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enHow to conduct DIY surveys onlinehttp://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-conduct-diy-surveys-online
<p><img style="float: right;" title="DIY online market research" src="/sites/default/files/Survey_249_0.jpg" alt="DIY market research{{}}" width="249" height="167" /><strong>For anyone carrying out their own market research online there are a number of pitfalls to watch out for. Chris Brookes and Gill Wales of the <a title="the Independent Consultants Group" href="http://theicg.co.uk/" target="_blank" rel="nofollow">Independent Consultants Group</a> offer some in-depth guidance</strong></p>
<p>When you’re considering doing a survey yourself, don’t forget that all surveys aren’t the same. It is fine to conduct certain types of online survey yourself, for example:</p>
<ul>
<li><a title="Ask what your customer thinks" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think" target="_self">customer feedback</a> on a recent purchase experience</li>
<li>incidence checks (to find out who is buying a particular product or doing a particular thing)</li>
<li>PR stories</li>
<li>employee surveys on non-sensitive subjects such as their views of the staff restaurant</li>
<li>who's reading you and why</li>
</ul>
<h2>Why aren’t all surveys suitable for DIY research?</h2>
<p>It’s because, for any given survey, there are different levels of technical complexity, sensitivity and business risk.</p>
<p><strong>Technical complexity</strong></p>
<p>If you need to carry out technically complex projects such as market segmentation, pricing policy, or attitudes and motivation, then you will need specialist assistance.</p>
<p><strong>Sensitivity</strong></p>
<p>Different survey topics have different levels of sensitivity. Sometimes it is because the subject matter is highly personal, such as personal hygiene, personal finance, or religion, or what someone thinks about their job or their boss. Sometimes it is because of perceived objectivity: will the respondent feel they can trust you with the information?</p>
<p>Often, an independent third party is important in order to reassure respondents of confidentiality. Examples of this are employee surveys and surveys that people think may be a selling exercise rather than genuine research. In addition, some projects are politically sensitive internally to the organisation conducting them. It’s worth taking professional advice if the survey subject might be sensitive for any of these reasons.</p>
<p><strong>Risk</strong></p>
<p>Research can generally be categorised as strategic (because it relates to the organisation’s long-term strategy) or tactical (because it relates to smaller, single issues).</p>
<p>Strategic research projects could have a major impact on your organisation’s future, so there is greater risk attached to them. Generating unreliable or biased results could have serious consequences. For strategic research surveys it’s important that professional researchers are always involved.</p>
<p>As with all other research methods, online research can often be of greater value if combined with other approaches, such as focus groups or face-to-face interviews. These (qualitative) techniques can enable deep exploration of issues that are specific or unique to the organisation.</p>
<h2>How to write a good questionnaire</h2>
<p>The purpose of a <a title="How to create effective questionnaires" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires" target="_self">questionnaire</a> is to collect information that you can compile into statistics. This means that the questions have to be clearly understood without any risk of people interpreting the same question in different ways.</p>
<p>If the information you collect is to have any value, it is essential that questions are not leading and that people feel able to give clear and truthful answers.</p>
<p>A poorly constructed questionnaire will generate vague responses that either don’t answer your objectives or, worse still, give you unreliable data.</p>
<p>Some complicated types of research need interviewers to ask the questions and/or complex analysis systems to process the data. But even the most straightforward questionnaire design benefits from the knowledge of some basic rules.</p>
<h2>The importance of sampling</h2>
<p>The type and number of people you include in your survey (your sample) is even more important than writing a good questionnaire. You can write the best questionnaire ever created, but if you end up with responses from an unrepresentative sample of people, or you invite responses from people to whom the survey topic isn’t relevant, then you’re no closer to getting the information you need. You may have collected data that is misleading or just plain wrong. You also need to take care how you use and store the data, bearing in mind the <a title="Your firm and the Data Protection Act" href="/marketing/internet-marketing/email-marketing/your-firm-and-the-data-protection-act" target="_self">Data Protection Act</a>.</p>
<p>For example, you might be asking about a recent purchase experience, but if the people you invite to take part in the survey include ex-customers, prospective customers, or people who haven’t received their order yet, that part of your sample will find it impossible to respond and you may create a poor impression.</p>
<p>So, before you write a questionnaire, think about what type of person you need answers from. Then work out how you are going to reach them. <a title="Mailing lists" href="/marketing/direct-marketing/your-mailing-list" target="_self">Check e-mail lists</a> for relevance, currency and completeness. Don’t forget that the contacts on e-mail lists may also be used by other departments. Your potential research respondents could even be in dispute with another department, their account could be in arrears, or they may have recently notified your business about a bereavement.</p>
<p>Avoid embarrassing your organisation and causing distress to the respondent by checking the quality of your list. You’ll also need to co-ordinate your surveys to ensure that you’re not contacting people too often, inappropriately or inconsistently.</p>
<p>If you are posting the survey on a website, does that website have the type of traffic you need? Also, it is usually important to know the survey response rate — that is, what percentage of the people who saw the survey actually participated.</p>
<p>The validity of the research results depends not only on the number of people who take part, but also how well those people represent the audience you are researching. Does your survey sample share the same characteristics (e.g. spread of age and occupations, mix of genders, products purchased) as the population it is intended to represent? For example, if you e-mailed your questionnaire to 100 men and 100 women and only get responses from women, then the results will not be representative.</p>
<h2>Making sense of the findings</h2>
<p>It is important to accurately analyse and communicate your findings. You will probably have both <a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">open-ended</a> and <a title="What is quantative research?" href="/marketing/market-research/what-is-quantitative-research-">closed questions</a> to analyse, will need to know how to read data tables, and should consider the use of cross tabulations.</p>
<p>Think about the person or people who will be using and acting on the findings; what information do you need to give them? Above all, you will have to organise and interpret the data so that conclusions are reliable and the common pitfalls of working with survey data are avoided. Choosing appropriate types of charts, and a consideration of the nature and size of the sample you achieved, are important elements here.</p>
<p>The journalists’ Who, What, When, How and Why questions are a useful guide when you are preparing a report:</p>
<ul>
<li><strong>Why </strong>was the research done?</li>
<li><strong>What </strong>does your audience really want to know?</li>
<li><strong>Who </strong>did you survey and <strong>who </strong>needs to know the results?</li>
<li><strong>When </strong>do they need the results?</li>
<li><strong>How </strong>best to report the results? A PowerPoint presentation, Word document, verbal briefing?</li>
<li><strong>So what? </strong>Ask yourself if the survey results tell you enough to make firm recommendations for action, or do they raise new questions, needing more research?</li>
</ul>
<h2>Six top tips for DIY research</h2>
<ol>
<li><strong>Start with your end-goal in mind</strong> — as you are writing the questionnaire, consider how you will present the findings.</li>
<li><strong>Keep your survey as short and simple </strong>as the topic allows.</li>
<li><strong>Doing a survey isn’t just about writing questions</strong>: your sample and how you communicate your findings are equally important.</li>
<li><strong>Involve (at least) one other pair of eyes at each stage</strong>, to help review, pilot, or check understanding.</li>
<li><strong>Liaise with people who can help you</strong>, either internally or externally.</li>
<li><strong>Don’t be afraid to ask for help</strong>.</li>
</ol>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Top 20 research questions" href="/marketing/market-research/top-20-questions-that-research-could-help-you-answer" target="_self">Top 20 questions that research could help you answer</a></li>
<li><a title="Creating effective questionnaires" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires" target="_self">How to create effective customer questionnaires</a></li>
<li><a title="DIY market research" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/do-it-yourself-market-research" target="_self">Do-it-yourself market research</a></li>
</ul>
ArticleQuestionnaires, surveys and focus groupsMaximisingFri, 13 May 2011 11:45:59 +0000Denis4821 at http://www.marketingdonut.co.ukHow to create effective customer questionnaireshttp://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires
<p><strong><img style="margin-top: 10px; margin-bottom: 10px; float: right;" title="How to create effective customer questionnaires - A red pencil on a questionnaire" src="/sites/default/files/Questionnaire_249x167.png" alt="How to create effective customer questionnaires{{}}" width="249" height="167" />The humble questionnaire is a very powerful tool. Not only does it allow you to find out what your customers think but it’s also a great way to boost customer loyalty and build relationships. But what makes a successful questionnaire? <a title="Drayton Bird" href="/experts/drayton-bird">Drayton Bird</a> and Andrew Boddington have the answers</strong></p>
<p>Nobody knows more about questionnaires than my old colleague Andrew Boddington, who is one of the best direct marketers I know.</p>
<p>I have worked with him for many years now off and on. So, after one or two comments from me, he has kindly written a quick guide to what you should know about the subject.</p>
<h2>Why questionnaires?</h2>
<p>Some techniques — and <a title="Marketing Donut" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/top-20-questions-that-research-could-help-you-answer">questionnaires</a> are a good example — are so deceptively simple and obvious that marketers ignore them. They're not "creative" enough.</p>
<p>Well, forget "creative". I like things that work. And questionnaires work.</p>
<p>People love to give you their opinions. The questionnaire is a very unthreatening way to approach people.</p>
<p>You just have to ask nicely and often amazingly high percentages will reply.</p>
<p>When they do reply, this gives you an excuse to talk to them again.</p>
<p>So here is Andrew's advice for you:</p>
<ul>
<li>People agonise over making the survey short for maximum response, but do not fear a long survey. As long as the questions seem natural and logical to the reader, they will complete it, once the first few questions have been answered.</li>
<li>If you have some questions which are more important than others, make sure the survey has clear sections — the first with the main questions, then the next introduced with the words "You do not have to answer these, but if you do so, it'll mean x, y and z benefit...and will only take a few minutes more..."</li>
<li>Response can be increased by a variety of details. A lot depends on the honesty in the introduction, why you are doing the survey, what is in it for the responder (altruism, sense of helping self or fellows, and maybe even the chance to win something in a free draw, as a gesture of thanks), explaining how the results will be used, and even how they can see a copy of the results (usually a simple summary).</li>
<li>People love being asked for their opinion (“<a title="Why listening to your customers matters" href="/marketing/customer-care/understanding-your-customers/why-listening-to-your-customers-matters">your opinion matters to us</a>”), so use flattery to increase participation.</li>
<li>Make the introduction from someone they already might know and respect, rather than have no name at all. Even have it look like a letter, with a signature and photo for a touch of warmth.</li>
<li>Much depends on the layout, the clarity of typeface and typography, and the use of colours, tints and boxed sections make it look less daunting.</li>
<li>It sounds radical, but question how much response is really needed. Statistically a lower response sample may be fine, as long as the views are representative.</li>
<li>Try a reminder mailing/emailing after the natural response has dried up from the first survey. Non-responders are not against responding, they just have busy lives, are lazy, like all human beings, so a courteous reminder will typically get half as much response again.</li>
<li>Consider how/when the survey gets handed over, emailed or mailed. Is there a better moment, so they'll more disposed to take part?</li>
</ul>
<p>Written by <a title="Drayton Bird" href="/experts/drayton-bird" target="_blank">Drayton Bird</a> of <a title="Drayton Bird Associates" href="http://draytonbird.com/" target="_blank" rel="nofollow">Drayton Bird Associates</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Marketing Donut" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/top-20-questions-that-research-could-help-you-answer">Top 20 questions that research could help you answer</a></li>
<li><a title="Marketing Donut" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/what-is-quantitative-research-">What is quantitative research</a></li>
<li><a title="Marketing Donut" href="/marketing/customer-care/understanding-your-customers/ask-your-customer-what-they-think">Ask your customer what they think</a></li>
</ul>
ArticleUnderstanding your customersQuestionnaires, surveys and focus groupsMarket researchPlanningMon, 29 Nov 2010 12:17:12 +0000paulak4401 at http://www.marketingdonut.co.ukListen and learn - increasing sales through customer feedbackhttp://www.marketingdonut.co.uk/marketing/customer-care/understanding-your-customers/listen-and-learn-increasing-sales-through-customer-feedback
<p><img style="float: right; margin-left: 10px; margin-right: 10px;" title="Increasing sales through customer feedback - comments form" src="/sites/default/files/anycomments_249.png" alt="Any comments?{{}}" width="249" height="167" /><strong>Whether you like it or not, customers are publishing feedback on your products and services on the internet and via social networking sites like Twitter and Facebook. What your customers say is incredibly valuable. Positive feedback boosts business and criticism can help you to improve your offering, says <a title="Chris Barling" href="/experts/chris-barling" target="_self">Chris Barling</a> of <a title="SellerDeck" href="http://sellerdeck.co.uk/" target="_blank" rel="nofollow">SellerDeck<br /></a></strong></p>
<p>The spectacular rise of <a title="Facebook " href="/marketing/internet-marketing/social-media-and-online-networking/get-started-with-facebook">Facebook</a> and <a title="Twitter " href="/marketing/internet-marketing/social-media-and-online-networking/get-started-with-twitter">Twitter</a> have led to enormous business interest in social networking. Despite the talk, I believe there have been limited examples of profitable activities. Arguably, the customer feedback arising from social networking is the exception, and it is this that is currently helpful to businesses.</p>
<h2>The case for feedback</h2>
<p>It’s a fact that every significant business now gets feedback spread across the web, and it doesn’t matter whether they want it or not. This is a big change. Before the internet, dissatisfied customers had limited options. Sure, they could ring the company and maybe tell their friends. There was Trading Standards or even legal action, but none were serious threats.</p>
<p>Today, it’s different. As a result, it’s hard to find any reason why a serious online retailer would want to avoid having user-generated reviews of products and services on their site. It ensures that there’s plenty of good feedback to balance out any bad. It provides management with information and brings problems quickly to the fore, enabling them to be fixed before they get out of hand.</p>
<p>Implemented in the right way, feedback can add significant depth and a feeling of integrity to product pages. It can’t easily be copied by competitors and the variety of text is attractive to search engines — the most relevant and latest keywords will automatically be used by customers. Google now has specific feedback tags, putting the information straight into its results page.</p>
<h2>Increased sales</h2>
<p>With the assumption that <a title="How to deliver first-class customer service" href="/marketing/customer-care/customer-service/how-to-deliver-first-class-customer-service">good quality service</a> is your aim, great comments from previous buyers makes it easier for prospects to turn into customers. Research shows it’s likely that you can exceed a 10% rise in sales from a good feedback system, as well as reaping the benefits from improved search engine positions.</p>
<h2>Unadulterated feedback</h2>
<p>There are two choices for dealing with customer comments: they can be managed by you or by an independent third party. The second option seems crazy — why would you want to give up the option to edit or delete venomous comments? But if you tamper with feedback, you risk an even stronger negative reaction. And no one likes censorship.</p>
<p>Keeping negative comments on your site makes them less likely to appear elsewhere and ensures that you can reply showing what action you took. Personally, when I look at feedback I search for some negative comments. In my mind this validates the positive. Every business gets things wrong occasionally and everyone has awkward customers. Feedback that sounds like marketing copy is feedback to be ignored. The negative endorses the validity of the positive, and the way you deal with problems enhances your image.</p>
<h2>Only customers please!</h2>
<p>There are good reasons for restricting feedback to actual customers. They are actively engaged, you can directly solicit feedback from them and make it easy to respond. In practice, much more feedback will be delivered by targeting your own customers.</p>
<p>That approach also excludes competitors and prevents disgruntled customers feeding back repeatedly. This is a real problem with unrestricted feedback systems.</p>
<h2>The end game</h2>
<p>Social networking is becoming the norm. Buyers expect a much more interactive experience, and they are less and less impressed with marketing copy. It’s an accepted truth that listening to customers is critical, but previously it was still possible to run a company while ignoring this virtue.</p>
<p>The choice is now between helping customers to provide feedback that can grow your sales, or ignoring the issue and not being sure what happens. This is an important and growing area that every web store needs to consider.</p>
<p>Written by <a title="Chris Barling" href="/experts/chris-barling" target="_self">Chris Barling</a> of <a title="SellerDeck" href="http://www.sellerdeck.co.uk/" target="_blank" rel="nofollow">SellerDeck</a>.</p>
ArticleUnderstanding your customersQuestionnaires, surveys and focus groupsSales techniques and negotiationsCustomer complaintsSellingThu, 12 Aug 2010 17:59:51 +0000Kasia4141 at http://www.marketingdonut.co.ukWhat can businesses learn from price comparison sites?http://www.marketingdonut.co.uk/marketing/market-research/market-analysis/what-can-businesses-learn-from-price-comparison-sites-
<p><strong><img src="/sites/default/files/Magnifyingglasscoins_249x167.jpg" alt="Coins: price comparison sites{{}}" width="249" height="167" />Price comparison websites do a great job helping consumers find good deals, but can they also be useful to small business owners? Rachel Miller finds out how to use price comparison websites to analyse the competition and target an offer more effectively</strong></p>
<p>Price comparison websites such <a title="Kelkoo" href="http://www.kelkoo.co.uk/" target="_blank" rel="nofollow">Kelkoo</a>, <a title="Price Grabber" href="http://www.pricegrabber.co.uk/" target="_blank" rel="nofollow">Price Grabber</a> and <a title="Google Shopping" href="https://www.google.co.uk/shopping" target="_blank" rel="nofollow">Google Shopping</a>&nbsp;have proliferated in recent years as more people have turned to shopping online - and more e-commerce outlets have opened.</p>
<p>For consumers, the opportunity to compare prices from different retailers at a glance helps them save money by finding good deals. Most of these sites now also carry user ratings that help buyers make decisions about products and retailers, and some even recommend new products to buy.</p>
<p>So there is plenty there for consumers. But what can a typical small business owner learn from a price comparison website?</p>
<ol>
<li><strong>Find out who’s selling what. </strong>Price comparison websites allow you to compare many of the suppliers of a product in one place, giving you a consumers’ eye-view of the market. It’s easy to search for the products you sell to see exactly who you are up against and find out what makes each of them special - do they have good terms of service, for example, or an easy-to-use website? It’s worth finding out what else your competitors are selling, too, because you might be missing out on popular product lines and potentially lucrative business.</li>
<li><strong>Keep up to date on price. </strong>In a difficult market and with consumers looking for bargains, price is more sensitive than ever before. As a result, retailers are constantly adjusting prices to try and stay ahead of the game, both on the high street and online. As a small business, you can’t afford to be out of touch on price. You may not be able to compete purely on price with the biggest firms but you must make sure that your price is competitive.</li>
<li><strong>Compare levels of service. </strong><a title="Customer care" href="/marketing/customer-care/customer-service/great-customer-service-a-real-life-example">Customer service</a> is an important selling point for small businesses and can help them stand out from bigger operators. Service terms should cover delivery speeds and costs, refund policies and payment security. Crucially, they should also offer an easy way to ask questions and make complaints. Use price comparison sites to compare the service being offered by the different sellers in your market.</li>
<li><strong>Check out the detail. </strong>Shoppers don’t always choose the cheapest product, but will take into account all the extras, including shipping costs, the service promise and the reputation of the retailer, before committing to buy. So it’s worth checking out the details and not just comparing price tags - that’s what your customers will be doing after all.</li>
<li><strong>Pay attention to user ratings and reviews. </strong>Reputation is critical and<strong> </strong>many price comparison websites facilitate <a title="Word of mouth recommendation" href="/marketing/pr/pr-opportunities/how-to-encourage-word-of-mouth-recommendations">word-of-mouth recommendation</a> through customer ratings and reviews. This is basically free market research that tells you which products are rated most highly. What’s more, most reviews include feedback about service as well as the products themselves so you can compare how well your competitors are meeting their customers’ expectations. Could you do better?</li>
<li><strong>Watch out for hot products and spot trends. </strong>Many price comparison sites pick out best-selling items or feature popular products on their home page. By spotting trends, you can make sure you stock the right goods, promote them prominently and price them competitively to take advantage of demand. </li>
<li><strong>Look for weaknesses. </strong>When you analyse your competitors on price comparison sites, don’t just look at what they are doing - check for the gaps, too. Do you have something unique to offer that can make you stand out from the crowd? What are your strengths and do your customers know about them? Compare unique selling points and make sure yours are distinct. Comparison websites can give you a good snapshot of a sector - is there a <a title="A gap in the market" href="/marketing/marketing-strategy/your-target-market/spotting-gaps-in-your-market">gap in the market</a> for a new product or service?</li>
<li><strong>Click through to websites. </strong>Some price comparison websites allow you to buy then and there. But most offer lists and links through to individual suppliers. This is a crucial stage in the buying process when shoppers often rethink their choices. To investigate your competitors fully, you need to click through to their websites and see what they are getting right and wrong. Shoppers will be put off by badly-designed landing pages, poor navigation, inadequate security or by simply having to jump through too many hoops to be able to buy something. Make sure your website is clear and simple to use.</li>
</ol>
ArticleMarket analysisPricingMaximisingMon, 21 Sep 2009 16:35:58 +0000Kasia3216 at http://www.marketingdonut.co.ukA guide to price comparison websiteshttp://www.marketingdonut.co.uk/marketing/market-research/market-analysis/a-guide-to-price-comparison-websites
<p><img style="float: right;" title="Price comparison sites - best price label" src="/sites/default/files/Bestprice_249x167.jpg" alt="Price comparison sites - best price label{{Price comparison sites - best price label}}" width="249" height="167" /><strong>Price comparison websites are valuable tools to help you analyse your competitors and check out fluctuations in prices. Rachel Miller guides you through some of the key websites</strong></p>
<p>If you sell products to consumers, then it may be worth your while to <a title="What can businesses learn from price comparison websites?" href="/marketing/marketing-strategy/pricing/what-can-businesses-learn-from-price-comparison-sites-">look at price comparison websites on a regular basis</a>. These sites are designed for consumers to find the right products at the right price. But they are also ideal tools for businesses that need to see exactly what their competitors are offering, including product types and service levels.</p>
<p>At the same time, these sites provide the quickest way to analyse prices. With rapidly changing prices, sites such as <a title="Kelkoo" href="http://www.kelkoo.co.uk" target="_blank" rel="nofollow">Kelkoo</a> are invaluable for businesses that want to keep up with price levels and changes in demand.</p>
<p>But where do you start? Here, we list some of the most useful price comparison sites - from the main ones such as Kelkoo and <a title="Pricegrabber" href="http://www.pricegrabber.co.uk/" target="_blank" rel="nofollow">Pricegrabber</a> - to some specialist sites that focus on products such as books, perfume and even wine.</p>
<h2>Consumer products comparison sites</h2>
<p>These websites compare prices across a wide range of consumer goods - including electronics, fashion, CDs and DVDs, sports equipment and even travel. They often feature side-by-side comparisons of features and prices and also show delivery prices and promises. At the same time, user feedback and reviews rate the products and the companies that supply them.</p>
<p>While the sites are somewhat dominated by the biggest retailers, small firms are also featured on price comparison websites. In many ways, this levels the playing field, allowing smaller suppliers to compete on service and price.</p>
<p>Some sites, including Kelkoo and <a title="Pricerunner" href="http://www.pricerunner.co.uk/" target="_blank" rel="nofollow">Pricerunner</a>, offer specialist applications for mobile phones so you can keep up with the market wherever you are.</p>
<p><strong><a title="Kelkoo" href="http://www.kelkoo.co.uk/" target="_blank" rel="nofollow">Kelkoo</a></strong><br />Europe’s largest ecommerce website after Amazon and Ebay. Kelkoo compares prices and product features on millions of products.</p>
<p><strong><a title="Pricegrabber" href="http://www.pricegrabber.co.uk/" target="_blank" rel="nofollow">Pricegrabber</a></strong><br />Compares millions of products and services in 16 categories, such as clothing, consumer electronics, furniture and jewellery.</p>
<p><strong><a title="Pricerunner" href="http://www.pricerunner.co.uk/" target="_blank" rel="nofollow">Pricerunner</a></strong><br />Compares thousands of products and millions of prices.</p>
<p><strong><a title="Google shopping" href="https://www.google.co.uk/shopping" target="_blank" rel="nofollow">Google Shopping</a></strong><br />Type in a product name and Google Shopping comes up with a list of suppliers that can be sorted by price.</p>
<p><strong><a title="Shopzilla" href="http://www.shopzilla.co.uk/" target="_blank" rel="nofollow">Shopzilla</a></strong> and <strong><a title="Bizrate" href="http://www.bizrate.co.uk/" target="_blank" rel="nofollow">Bizrate</a></strong><br />Shopzilla connects millions of consumers with thousands of retailers. Shopzilla also operates the BizRate consumer feedback network.</p>
<p><a title="Shopping.com" href="http://uk.shopping.com/" target="_blank" rel="nofollow"><strong>Shopping.com</strong></a></p>
<p>An <a title="Ebay" href="http://www.ebay.com/" target="_blank" rel="nofollow">eBay</a> company, Shopping.com offers millions of products, thousands of sellers and millions of reviews from its <a title="Epinions" href="http://www.epinions.com/?sb=1" target="_blank" rel="nofollow">Epinions</a> community.</p>
<h2>Some other consumer goods price comparison sites:</h2>
<ul>
<li><a title="Buy Central" href="http://www.buycentral.co.uk/" target="_blank" rel="nofollow">Buy Central</a></li>
<li><a title="Ciao" href="http://www.ciao.co.uk/" target="_blank" rel="nofollow">Ciao</a></li>
<li><a title="Twenga" href="http://www.twenga.co.uk/" target="_blank" rel="nofollow">Twenga</a></li>
<li><a title="Smartshopping" href="http://www.smartshopping.co.uk" target="_blank" rel="nofollow">Smartshopping</a></li>
</ul>
<h2>Financial comparison sites</h2>
<ul>
<li><a title="Moneysupermarket" href="http://www.moneysupermarket.com/" target="_blank" rel="nofollow">Moneysupermarket</a></li>
<li><a title="Money Net" href="http://www.moneynet.co.uk/" target="_blank" rel="nofollow">MoneyNet</a></li>
<li><a title="uSwitch" href="http://www.uswitch.com/money/" target="_blank" rel="nofollow">uSwitch</a></li>
<li><a title="Money Facts" href="http://moneyfacts.co.uk/" target="_blank" rel="nofollow">Money Facts</a></li>
<li><a title="Love Money" href="http://www.lovemoney.com/" target="_blank" rel="nofollow">Love Money</a></li>
<li><a title="Go Compare" href="http://www.gocompare.com/" target="_blank" rel="nofollow">Go Compare</a></li>
<li><a title="Comparethemarket" href="http://www.comparethemarket.com/" target="_blank" rel="nofollow">Comparethemarket</a></li>
<li><a title="Confused.com" href="http://www.confused.com/" target="_blank" rel="nofollow">Confused.com</a></li>
</ul>
<h2>Specialist price comparison websites</h2>
<p><strong>Wine</strong></p>
<ul>
<li><a title="Quaffersoffers" href="http://www.quaffersoffers.co.uk/" target="_blank" rel="nofollow">Quaffersoffers</a></li>
<li><a title="Wine-searcher.com" href="http://www.wine-searcher.com/" target="_blank" rel="nofollow">Wine-searcher.com</a><br />
<!--/li--><!--/li--></li>
</ul>
<p><strong>DVDs, CDs and books</strong></p>
<ul>
<li><a title="Find DVD" href="http://www.find-dvd.co.uk/" target="_blank" rel="nofollow">Find-DVD</a></li>
<li><a title="Find CD" href="http://www.find-cd.co.uk/" target="_blank" rel="nofollow">Find-CD</a></li>
<li><a title="Bookkoob" href="http://www.bookkoob.co.uk/" target="_blank" rel="nofollow">Bookkoob</a></li>
<li><a title="Bookbrain" href="http://www.bookbrain.co.uk/" target="_blank" rel="nofollow">Bookbrain</a></li>
<li><a title="Price tracker" href="http://www.pricetracker.co.uk/" target="_blank" rel="nofollow">Price Tracker</a></li>
<li><a title="123 price check" href="http://www.123pricecheck.com/" target="_blank" rel="nofollow">123 price check</a></li>
</ul>
<p><strong>Mobile phones</strong></p>
<ul>
<li><a title="Mobiles4everyone" href="http://www.mobiles4everyone.com/" target="_blank" rel="nofollow">Mobiles4everyone</a></li>
<li><a title="Mobilechecker" href="http://www.mobilechecker.co.uk/" target="_blank" rel="nofollow">Mobilechecker</a></li>
<li><a title="One Compare" href="http://www.onecompare.com/" target="_blank" rel="nofollow">One Compare</a></li>
</ul>
<p><strong>Digital services</strong></p>
<ul>
<li><a title="Broadband Deals" href="http://www.BroadbandDeals.co.uk" target="_blank" rel="nofollow">Broadband Deals</a></li>
<li><a title="Simplifydigital" href="http://www.simplifydigital.co.uk/" target="_blank" rel="nofollow">Simplifydigital</a></li>
<li><a title="Broadband Choices" href="http://www.broadbandchoices.co.uk/" target="_blank" rel="nofollow">Broadband Choices</a></li>
<li><a title="Broadband Genie" href="http://www.broadbandgenie.co.uk/?pdg=bbg56647567_1853452927_1145527488&amp;gclid=CKW9v5nck7sCFTDMtAodLEwASg" target="_blank" rel="nofollow">Broadband Genie</a></li>
<li><a title="Cable.co.uk" href="http://www.cable.co.uk" target="_blank" rel="nofollow">Cable.co.uk</a></li>
</ul>
<p><strong>Perfumes</strong></p>
<ul>
<li><a title="Cheap Perfume Expert" href="http://www.cheapperfumeexpert.com/" target="_blank" rel="nofollow">Cheap Perfume Expert</a></li>
<li><a title="Fragrances Compared" href="http://www.fragrancescompared.co.uk/" target="_blank" rel="nofollow">Fragrances Compared</a></li>
</ul>
ArticleMarket analysisPricingPlanningMon, 21 Sep 2009 16:10:45 +0000Kasia3215 at http://www.marketingdonut.co.ukWhat types of market research should I use?http://www.marketingdonut.co.uk/marketing/market-research/what-types-of-market-research-should-i-use-
<p><strong>Are you confused or sceptical about what market research can offer?&nbsp;<a title="Julia Whitehead" href="/experts/julia-whitehead">Julia Whitehead</a>, director of Ask Joe Public, reveals how to use market research successfully</strong></p>
<p>Broadly there are two types of market research - <a title="What is quantitative research?" href="/marketing/market-research/what-is-quantitative-research-">quantitative</a> and <a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">qualitative</a> - and the relevance of either will depend on what sort of information you want to obtain.</p>
<p>Quantitative research is driven by statistical data. So, for example, if you want to find out what proportion of the market claim they would buy your product, then quantitative research is what you need to do.</p>
<p>There are many different types of quantitative research, although broadly this approach is <a title="How to create effective customer questionnaires" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires">questionnaire-based</a> and consists of closed-ended questions generally with a five-point scale on whether you agree or disagree with the statement.</p>
<p>The other type of research is qualitative research, which is often conducted with smaller samples of people and uses questioning techniques that are open-ended and interviews that are longer in duration. Qualitative research doesn't provide you with figures, but will enable you to get under the skin of what people feel and why.</p>
<p>Qualitative research is more often done face-to-face although <a title="Doing research on the Internet" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/doing-research-on-the-internet">internet-based research</a> is becoming more popular. The most popular form of qualitative research is focus groups or group discussions. These are groups of between six and eight people and they are used to explore their opinions about products, brands and services.</p>
<h2>How do I know which type of market research to use?</h2>
<p>Qualitative research can be used on its own, when you do not require statistics, but can also be used in advance of a quantitative research to help decide what questions need to be asked in the survey. Finally, qualitative and quantitative can be used alongside each other with qualitative providing an extra depth of understanding to the quantitative data.</p>
<h2>What should I consider before undertaking any market research?</h2>
<p>Before you begin a market research project it is important that you <a title="Writing the ideal brief" href="/marketing/market-research/choosing-a-market-research-agency/writing-the-ideal-brief">write a research brief</a>.&nbsp; A research brief will include:</p>
<ul>
<li> Background into your product or <a title="Building a brand" href="/marketing/marketing-strategy/branding/how-to-build-a-brand">brand</a>. This can include when you were established, turnover and where you are at now, as well as what you want the market research to deliver. There may also be specific theories or ideas that you have developed about your brand and wish to test.</li>
<li> Objectives, or what you want the information to tell you.</li>
<li> A description of your <a title="Six steps to defining your target market" href="/marketing/marketing-strategy/your-target-market/six-steps-to-defining-your-target-market">target market</a> - the people that you want to gather opinions from. The sample is an important part of the process for both types of research. For instance, if you are manufacturing a new brand of breakfast cereal, it is important that your sample are regular breakfast cereal-eaters and/or purchasers and their age and demographics relate to your target audience. It sounds obvious but it is no good interviewing pensioners about a children's breakfast cereal.</li>
<li> The type of information you require - for example, qualitative or quantitative.</li>
<li> Samples of products and packaging that may be shown to respondents in the course of the market research.</li>
<li> Budget - how much money do you have available to spend on this project?</li>
<li> Timings - when realistically you would like your feedback by? A common mistake of many companies is that they don't plan research far enough in advance.</li>
</ul>
<h2>How do I find the right market research agency or consultant to help me?</h2>
<p>If you are employing a research agency or consultant, give potential suppliers <a title="Writing the ideal brief" href="/marketing/market-research/choosing-a-market-research-agency/writing-the-ideal-brief">your research brief</a> and invite them to respond with a proposal outlining the type of research and methodology they would recommend. Ask around for recommendations and consult industry bodies to find the right agencies to approach. The more background information that you can provide them with, the better equipped they are to provide you with a constructive and appropriate response. Your shortlist for pitching should not be more than about three agencies or consultants.</p>
ArticleMarket researchPlanningMon, 20 Jul 2009 09:59:08 +0000Kasia2482 at http://www.marketingdonut.co.ukHow to source information about your markethttp://www.marketingdonut.co.uk/marketing/market-research/how-to-source-information-about-your-market
<p><strong>Market research can help you understand your customers' wants, needs, tastes and spending habits. By using published market information and your own field research, you can get the data you need to target new opportunities. Find out the steps involved</strong></p>
<ol>
<li>Do your<strong> research before</strong> launching new products or services or making changes to your business that will affect customers, such as introducing new opening hours or changing location.</li>
<li>Aim to discover what existing and potential customers want by using <strong>quantitative</strong> (desk) and <strong>qualitative</strong> (field) research.</li>
<li>Write down the <strong>questions you want to answer</strong>. Do you want to know where your customers live, for instance? What other products they buy? What they value in your offer? Having questions to answer will give your research a sense of purpose.</li>
<li>Make use of <strong>existing information</strong>. Ask your trade association and local business reference library whether they have market reports and statistics you can use - some of which will be free.</li>
<li>Use search engines such as Google to look for <strong>free online information</strong> about domestic or overseas markets. Associations like the Institute of Export should also be able to help you source information about other countries if you are thinking of trading overseas.</li>
<li>Visit <strong>commercial websites</strong> where relevant paid-for research can be found. The <a title="RBA" href="http://www.rba.co.uk/sources/mr.htm" target="new" rel="nofollow">RBA website</a> lists sources of both free and paid-for research.</li>
<li>Take care how you <strong>interpret any external data</strong> you collect. It may have a slightly different focus from the question you are researching or be out of date.</li>
<li>Make use of your own business data and do <strong>your own field research</strong>. Conduct a survey or get together a focus group to ask existing and potential<strong> </strong>customers what they think of a new product or service or other changes you are considering making.</li>
<li>Consider using a <strong>market research agency</strong> to do some field research for you - it will cost more, but they may get better results. Look for an agency with experience of working with other businesses in your sector.</li>
<li>Look at the <strong>general economic outlook</strong> as well as the outlook for your specific sector. You should also check for other external factors, such as upcoming legislation, that could affect any plans you have.</li>
<li>Research what your <strong>competitors</strong> are doing. Do they have new products or services coming up? How do they compare to you in terms of price? What do your customers think of them?</li>
<li>Use your market research to develop your <strong>marketing strategy</strong>. What you find out could justify changes to your pricing, the way you present your offer, the customer groups you target, your branding, and so on. Use the information to improve your business and increase your sales.</li>
</ol>
<h2>Cardinal rules</h2>
<p><strong>Do:</strong></p>
<ul>
<li> <strong>make use </strong>of existing free and paid-for research</li>
<li> carry out your own <strong>field research</strong> </li>
<li> <strong>consider </strong>using a market research agency </li>
<li> research what your <strong>competitors </strong>are doing</li>
</ul>
<p><strong>Don't:</strong></p>
<ul>
<li> make <strong>decisions</strong> based on too little research </li>
<li> rely too heavily on <strong>external research</strong> which may be out-dated or biased</li>
<li> <strong>ignore</strong> any evidence that contradicts your preconceptions</li>
</ul>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Researching your market" href="/marketing/market-research/researching-your-market">Researching your market</a></li>
<li><a title="Qualitative or quantative - which method is right for you?" href="/marketing/market-research/qualitative-or-quantitative-which-method-is-for-you-">Qualitative or quantative - which method is for you?</a></li>
<li><a title="How to carry out market research" href="/marketing/market-research/how-to-carry-out-market-research">How to carry out market research</a></li>
</ul>
ChecklistMarket researchPlanningTue, 19 May 2009 09:41:40 +0000Kasia1482 at http://www.marketingdonut.co.ukChoose a pricing strategyhttp://www.marketingdonut.co.uk/marketing/market-research/benchmarking/choose-a-pricing-strategy
<p><strong>Pricing is one of the most important aspects of your offer to get right. <a title="Andrew Gerrard" href="/experts/andrew-gerrard">Andrew Gerrard</a>, managing director of <a title="InTouch Marketing" href="http://www.intouchmarketing.co.uk/" target="_blank" rel="nofollow">Intouch Marketing</a>, looks at what you need to take into account before putting a price tag on your product or service</strong></p>
<p>How much is something worth? What is a fair price for a product or service?</p>
<p>Pricing is a highly complex area: get it right and sales and profit flow; get it wrong one way and sales flow but profit is poor; the other way and sales are poor but profit per transaction is good.</p>
<p>So how do you get it right and what are the methods that can be deployed to help increase the likelihood of success?</p>
<h2>Pricing basics</h2>
<p>It's important to begin at the beginning. The age-old saying, "Poor planning leads to poor performance" is really true in setting a pricing strategy. Once you have declared your hand it is very difficult to adjust price. Price sends a lot of messages and is used by consumers and buyers to assist them in positioning a brand in their minds.</p>
<p>Just think about a new perfume. You are standing at the perfume counter and have decided to buy a gift for a loved one. If like me, as a man, you don't really keep up to date with perfume brands, price helps you determine whether the perfumes you are considering are high quality brands or everyday slap-on water.</p>
<p>Yes, packaging and merchandising helps, but price is very important.</p>
<p>I have an ex-client who launched a brand into the canned dog food market. He didn't have the money to establish brand positioning via traditional advertising and communication techniques. He wanted consumers, when they were considering the brand, to view it in the same consideration pool as the brand leader. So he priced it at a 1p premium over the brand leader - and 39p played 38p. His brand quickly became established as a leading brand and, in fact, went on to take the number one position in the canned dog food market.</p>
<p>But he planned his pricing carefully, spent time understanding the consumer, studying the competition and realising that a significant proportion of consumers see pets as surrogate children and want to give them the best. Pricing at a premium gave them clues that Butcher's was the best.</p>
<h2>Setting your pricing strategy: key questions</h2>
<p>So when considering price planning, it's important to think more broadly than simply price. Let's for a moment consider the questions which in my view are important to consider before you decide on the right pricing strategy.</p>
<ol>
<li>Are you creating a new sector?</li>
<li>Who are your target audience?</li>
<li>What do they currently use or might they compare your offering with?</li>
<li>What advantages/benefits do you offer?</li>
<li>Do consumers value those advantages and see them as worth changing for?</li>
<li>Where will they be able to purchase the product or service?</li>
<li>Who are the competitors?</li>
<li>What price do they charge?</li>
<li>What differences do you offer in comparison with the competition?</li>
<li>Is the market growing or is it a well-established static market?</li>
<li>Is purchase likely to be repeat or a one off?</li>
<li>Are there consumables attached to the product?</li>
<li>What risk are consumers taking in choosing your product or service? (Should they be offered guarantees or reassurances?)</li>
</ol>
<p>By answering these questions, it is possible to get a better understanding of where a product or service fits into the market. These questions should be viewed as part of broader strategic review of the brand, product range or business.</p>
<h2>Setting your pricing strategy: which approach?</h2>
<p>Two models of market structure are useful tools to consider when developing strategy and considering pricing strategy as part of the review.</p>
<ol>
<li>The Boston Matrix</li>
<li>The Ansoff Grid</li>
</ol>
<p>1. &nbsp;The Boston Matrix was created by the Boston Consulting Group in 1970. It considers a product portfolio against market share and market growth axis. By plotting products on the matrix it allows a business to assess where its products and services fall. Thus, strategies can be developed to either increase share, maintain share, maximise returns or stimulate a market segment.</p>
<p><img src="/sites/default/files/tThe%20Boston%20Matrix.JPG" alt="{{}}" width="100%" height="auto" /></p>
<p>The actions we take will depend on whether the market is growing or not and what share we have. So if we have a strong share of a slow growing market, this would suggest that the pricing strategy should be set to maximise profits in other words, premium pricing to take advantage of the position may be worthwhile.</p>
<p>Alternatively, a low share in a fast growing market suggests the need is to generate share and thus penetrate the market. Setting price lower than competitors may encourage trial and switching. Once share is established, price can be adjusted upwards to maximise profits.</p>
<p>2. &nbsp;The second model, which is really a business development model, is the Ansoff Matrix. Mathematician and business manager Igor Ansoff devised this as a way of looking at a company's opportunity from both a market perspective and from a product or service perspective.</p>
<p><img title="Choose a pricing strategy - Ansoff pricing matrix" src="/sites/default/files/the%20Ansoff%20Matrix.JPG" alt="{{}}" width="100%" height="auto" /></p>
<p>As the grid shows, developing a strategy for each of the four quadrants is a very different task and would require a different pricing strategy each time.</p>
<h2>A summary of pricing strategies</h2>
<p>All businesses can draw from a number of alternative pricing strategies:</p>
<ul>
<li>Penetration- setting a low price to increase sales and market share</li>
<li>Milking - setting an initial high price and then slowly lowering the price to make the product available to a wider market, thus milking profits from the market layer by layer</li>
<li>Premium - setting price high to reflect the exclusiveness of the product</li>
<li>Competition - setting a price in comparison with competitors</li>
<li>Product line - pricing different products within the same product range at different price points</li>
<li>Bundle - offering a group of products at a reduced price</li>
<li>Psychological - considering the psychology of price and the positioning of price within the market place: for example, charging 99p instead of £1 or £199 instead of £200</li>
<li>Optional - offering optional extras along with the product to maximise revenue (used commonly within the car industry).</li>
</ul>
<p>Between the Boston and Ansoff matrices and the eight alternative pricing strategies provide a framework for considering price. But the key is to understand who you are targeting, with what and why. Only then can you begin to develop an effective pricing strategy.</p>
<p>Written by <a title="Andrew Gerrard" href="/experts/andrew-gerrard" target="_self">Andrew Gerrard</a> of <a title="InTouch Marketing" href="http://www.intouchmarketing.co.uk/" target="_blank" rel="nofollow">InTouch Marketing</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a href="/marketing/marketing-strategy/pricing/how-to-price-your-service">How to price your service</a></li>
<li><a href="http://www.lawdonut.co.uk/law/sales-and-marketing/consumer-protection/unfair-trading-trade-descriptions-and-pricing-20-faqs" target="_blank" rel="nofollow">Unfair trading, trade descriptions and pricing: 20 FAQs</a></li>
<li><a href="/marketing/marketing-strategy/pricing/what-can-businesses-learn-from-price-comparison-sites-">What can businesses learn from price comparison sites?</a></li>
</ul>
ArticleBenchmarkingPricingPlanningTue, 28 Apr 2009 14:40:13 +0000Kasia1254 at http://www.marketingdonut.co.ukWriting a research briefhttp://www.marketingdonut.co.uk/marketing/market-research/choosing-a-market-research-agency/writing-a-research-brief
<p><img style="margin-left: 10px; margin-right: 10px;" title="Writing a research brief - woman holding a pen" src="/sites/default/files/Womanholdingpen_249x167.jpg" alt="A business woman holding a pen{{}}" width="249" height="167" />This checklist is designed to help you write your research brief - you can customise it to suit your own requirements</p>
<h2>Background: About yourself</h2>
<p>A brief introduction to your company will help the agencies understand you and your individual needs. Background could include:</p>
<ul>
<li>What do you do? What is your industry sector and how do you fit into it?</li>
<li>How long have you been in business?</li>
<li>How many employees/sites do you have?</li>
<li>What are your business aims/aspirations?</li>
</ul>
<h2>Research objectives: What do you want from the research?</h2>
<p>There may be separate research objectives and business objectives. For example, the research objective may be to find out what your customers think of the service you provide. Driving that may be a more strategic business objective - for example, does the <a title="How to use feedback to improve your business" href="/marketing/customer-care/understanding-your-customers/how-to-use-customer-feedback-to-improve-your-business">research support modifying a service or product</a>? Remember, agencies must treat anything you tell them as confidential.</p>
<p>Objectives could include:</p>
<ul>
<li>Context for the decision to commission research</li>
<li>Who in the company is involved in the research</li>
<li>Research objectives</li>
<li>Business objectives. </li>
</ul>
<h2>Target audience: Who do you want the agency to talk to?</h2>
<p>Identify your <a title="Your target market" href="/marketing/marketing-strategy/your-target-market">target audience</a> (respondents). Are they businesses or consumers? Are they current customers, lapsed customers or those of a competitor? Are demographics relevant, such as age, gender, income, occupation, location, company size, etc? Target audience could include:</p>
<ul>
<li>Who you want researched and how many interviews (sample size)? You may want different options or for the agency to make recommendations</li>
<li>Contact details: can you provide a customer list, or should the agency find respondents themselves?</li>
</ul>
<h2>Research approach: What methodology do you envisage?</h2>
<p>Do you think your objectives would best be met through <a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">qualitative</a> or <a title="What is quantative research?" href="/marketing/market-research/what-is-quantitative-research-">quantitative research</a> or, perhaps, a combination? Should the research be conducted <a title="Questionnaires, surveys and focus groups" href="/marketing/market-research/questionnaires-surveys-and-focus-groups">face-to-face, by telephone or even online</a>? But don't worry if you're not sure. Approach could include:</p>
<ul>
<li>Your preferred methodology</li>
<li>Request to agencies to recommend an approach and explain their recommendation.</li>
</ul>
<h2>Timescale: When do you need the findings by?</h2>
<p>Consider internal milestones such as meetings and decision-making deadlines. Timescale could include:</p>
<ul>
<li>Timescale for the procurement process, the start of the research and when you want the findings </li>
<li>Whether you want to receive top-line findings in advance of the main findings</li>
<li>Leaving time to receive a draft set of findings for you to review before receiving the final deliverables.</li>
</ul>
<h2>Deliverables: What research findings do you expect the agency to give you?</h2>
<p>Do you want the findings in a written report format or as a presentation? You may want to have both, or to have a meeting with your agency to discuss the findings. Deliverables could include:</p>
<ul>
<li>Your preferred format for the findings - for example, a report in Word or a presentation in PowerPoint, hard copy and/or electronic, etc </li>
<li>Do you want the agency to present the findings?</li>
<li>Is there anything else you expect the agency to provide?</li>
</ul>
<h2>Research budget: How much money do you have to spend?</h2>
<p>It can help to give agencies guidance on the <a title="How to research on a budget" href="/marketing/market-research/how-to-research-on-a-budget">available budget</a>, even if it is only a ball-park figure. They can then help you maximise your available budget and maybe advise on an approach you had not considered. Budget could include:</p>
<ul>
<li>An indication of available budget; stipulate whether or not this includes VAT</li>
<li>Preferred invoicing schedule.</li>
</ul>
<h2>Contact details: How should the agency get in touch with you?</h2>
<ul>
<li>Provide names and contact details for the key contacts for the bid; request the same from them</li>
<li>Who should agencies contact if they have any queries regarding the brief? </li>
<li>Who should they send their bid to, when by and how (eg electronically or hard copy)?</li>
</ul>
<p>Good luck!</p>
<p>Written by <a title="Rob Sheldon" href="/experts/rob-sheldon" target="_self">Rob Sheldon</a> of <a title="Accent Marketing &amp; Research" href="http://www.accent-mr.com/" target="_blank" rel="nofollow">Accent Marketing &amp; Research</a>.</p>
ChecklistChoosing a market research agencyPlanningFri, 03 Apr 2009 11:25:42 +0000Chris Pearce856 at http://www.marketingdonut.co.ukGetting the measure of your marketinghttp://www.marketingdonut.co.uk/marketing/direct-marketing/running-a-direct-mail-campaign/getting-the-measure-of-your-marketing
<p><strong><img title="Getting the measure of your marketing - tape measure" src="/sites/default/files/Tapemeasure_249x167.jpg" alt="Tape measure{{}}" width="249" height="167" />When marketing budgets are tight, your marketing needs to work harder and smarter than ever. Evaluating your activities needn't be expensive and it can save you money in the long-term. Fiona Blades, CEO of market research company <a title="MESH Planning" href="http://meshexperience.com/" target="_blank" rel="nofollow">MESH Planning</a>, explains how small firms can measure their marketing</strong></p>
<h2>Use your website to measure your marketing</h2>
<p>A lot of marketing activity is designed to drive customers to <a title="Your website" href="/marketing/internet-marketing/your-website">your website</a> so you should analyse your website statistics on a regular basis. You need to know how many people are visiting your site, what pages they are looking at and when. Timing is everything. If you are doing some <a title="Advertising" href="/marketing/advertising">advertising</a>, for example, you can see by the timing of visitors whether it has sparked an increase in website traffic.</p>
<h2>Ask customers how they found you</h2>
<p>When customers come to you, always ask them how they heard about you. It could be via <a title="How to encourage word-of-mouth recommendations" href="/marketing/customer-care/customer-service/how-to-encourage-word-of-mouth-recommendations">word of mouth</a>, an entry in a directory or they could have come across your firm at <a title="Exhibitions" href="/marketing/exhibitions-and-events/exhibitions">an exhibition</a>. Asking where they heard about you should be common practice. Keep a record of what they say. It will help you to see which marketing methods are most effective.</p>
<h2>Ask customers why they picked you</h2>
<p>You may know what channel your customers have come through but what was it about your message that triggered their interest? <a title="Listen and learn - increasing sales through customer feedback" href="/marketing/sales/sales-techniques-and-negotiations/listen-and-learn-increasing-sales-through-customer-feedback">Ask a selection of customers</a> what made them contact your firm. It could be anything from reputation to value for money. The marketing message that proves most effective should be the one you focus on in future.</p>
<h2>Measure your advertising</h2>
<p>If you are doing advertising in the press, you can publish different telephone numbers and URLs so that you can see where your enquiries are coming from. This way, you can track the response rate to a specific advertisement.</p>
<h2>Measure your mailings</h2>
<p>Whether you send a mail pack or a letter, you need a reply-paid card or envelope. The less someone has to do to respond, the higher the response rate you will get. The reply cards should have a code so that you can measure exactly where the response came from - which type of person, which area or which sector.</p>
<h2>Ask your customers about your marketing</h2>
<p>Response rates to mailings tell you how many but not why. If you've sent 1000 mailings, you could ring a small sample of 50 and ask them questions such as did they receive the mailing, did they open it, what was the key message, did they respond and why. This is the ideal job for a work placement student. You may find that while a mailing was positively received, many people just had not got around to replying. In that case, a follow-up mailing will undoubtedly increase response rates. Or you may find that using other channels with the mailing,&nbsp;such as phone or email, will boost responses.</p>
<h2>Use the data to improve your marketing</h2>
<p>As you evaluate your marketing activity, you gain more and more market knowledge. Your tests will show which media channels work best for your business. The evaluation will also reveal which customer groups are most responsive and which marketing messages are most powerful. Armed with this information, you can make your marketing even more effective every time.</p>
<p>Written by Fiona Blades of <a title="MESH Planning" href="http://meshexperience.com/" target="_blank" rel="nofollow">MESH Planning</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Running a direct mail campaign" href="/marketing/direct-marketing/running-a-direct-mail-campaign">Running a direct mail campaign</a></li>
<li><a title="Leafleting in your area" href="/marketing/direct-marketing/leafleting-in-your-area">Leafleting in your area</a></li>
<li><a title="Mobile and text marketing" href="/marketing/direct-marketing/mobile-and-text-marketing">Mobile and text marketing</a></li>
</ul>
ArticleRunning a direct mail campaignBenchmarkingPlanningFri, 03 Apr 2009 10:54:11 +0000Chris Pearce838 at http://www.marketingdonut.co.ukIntroduction to desk researchhttp://www.marketingdonut.co.uk/marketing/market-research/market-analysis/introduction-to-desk-research
<p><img style="margin-left: 10px; margin-right: 10px;" title="Desk research - pile of open books" src="/sites/default/files/Booksondesk_249x167.jpg" alt="A pile of books on a desk{{}}" width="249" height="167" /><strong>Desk research, or secondary research, is any intelligence or data that already exists. While it may not be able to answer specific questions, desk research can provide you with a lot of extremely useful information, much of it for free</strong></p>
<p>Finding the right information may take some legwork but it will help you make informed decisions about how to market your products and services. There are many sources of secondary research:</p>
<h2>Directories</h2>
<p>If you operate in a local area, it's a good idea to look through the local directories (both paper-based and online) to see who your <a title="Keeping your eyes on the competition" href="/marketing/market-research/market-analysis/keeping-your-eyes-on-the-competition">competitors</a> are, where they are located and how they market themselves. If you are a business-to-business firm, get hold of the specialist directories for your sector. They will list your competitors and may provide further information about their products and services. They could even help you to see where there are <a title="Spotting gaps in your market" href="/marketing/market-research/spotting-gaps-in-your-market">gaps in the market</a>.</p>
<h2>Internet research</h2>
<p>You can find out a lot about your market and your competitors by going online. On their own websites you can see how competitors are marketing their products, what their unique selling points are and directly <a title="A guide to price comparison sites" href="/marketing/market-research/market-analysis/a-guide-to-price-comparison-websites">compare prices</a> for different products and services. You'll get an insight into their strategy by reading their content, including blogs.</p>
<p>By Googling your rivals you can also find out where else they are coming up – from coverage in the media to entries in directories or mentions at events. See what they are up to on their social media sites and also notice how customers are responding; this could highlight where rivals are failing and suggest new opportunities for your business.</p>
<h2>Libraries</h2>
<p>All large libraries have business sections and access to online services. The biggest, the British Library, in St Pancras, London, has its own <a title="British Library Business and IP Centre" href="http://www.bl.uk/bipc/index.html" target="_blank" rel="nofollow">Business and IP Centre</a> specifically for entrepreneurs. Here you can browse through business books, journals and reports. The British Library offers access to resources such as COBRA, the Complete Business Reference Adviser database, and GrantFinder, a comprehensive, UK database for grants and loans. There is also free access to market research reports from Mintel, Key Note, Datamonitor and Frost &amp; Sullivan. In addition, the FAME database provides detailed company information on 1.65 million UK and Irish public and private companies.</p>
<h2>Market research reports</h2>
<p>Sector surveys and reports from the likes of Mintel and Key Note can tell you a lot about market conditions and trends. They often indicate the threats and opportunities in a sector and can highlight where there are gaps in the market. If you want to get a specific report and it is not yet freely available at the British Library, you can always buy a copy. Reports like these can cost thousands of pounds but it is often possible to buy a small part of a report that covers the specific area you are interested in, for much less. Go to <a title="MarketResearch.com" href="http://www.marketresearch.com/" target="_blank" rel="nofollow">www.marketresearch.com</a> for lists of thousands of market research reports and where to obtain them.</p>
<h2>Trade associations</h2>
<p>Industry and business associations are a great source of information. Many trade bodies give their members access to industry statistics and reports. Other organisations include special interest and lobbying groups that often do their own research. It is also worth approaching your local business support organisation or Chamber of Commerce to see what resources they have.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="A guide to price comparison sites" href="/marketing/market-research/market-analysis/a-guide-to-price-comparison-websites">A guide to price comparison sites</a></li>
<li><a title="Keeping your eyes on the competition" href="/marketing/market-research/market-analysis/keeping-your-eyes-on-the-competition">Keeping your eyes on the competition</a></li>
</ul>
ArticleMarket analysisPlanningFri, 03 Apr 2009 10:25:58 +0000Chris Pearce815 at http://www.marketingdonut.co.ukMeasuring customer satisfactionhttp://www.marketingdonut.co.uk/marketing/market-research/market-analysis/measuring-customer-satisfaction
<p><img style="margin-left: 10px; margin-right: 10px;" title="Managing customer satisfaction - A customer satisfaction survey" src="/sites/default/files/Survey2_249.jpg" alt="A customer satisfaction survey{{}}" width="249" height="167" /><strong>For many businesses, retaining existing customers is cheaper than acquiring new customers. Customers become repeat purchasers usually because they believe that the products or services they buy are good value for money and the service they receive when contacting the firm is at the very least satisfactory. So the question is: how can one measure if the service a customer receives is of an acceptable standard?</strong></p>
<p>If budgets are limited, there are a number of actions that a company can take to obtain data about how satisfied their customers are with the company's products and services. These include:</p>
<ul>
<li>Examining <a title="Customer complaints" href="/marketing/customer-care/customer-complaints">recent correspondence customers have sent</a> to the company (specifically emails and letters). What one should look for here is <a title="Common complaints and how to avoid them" href="/marketing/customer-care/customer-complaints/common-complaints-and-how-to-avoid-them">the frequency with which certain topics are being raised</a> and the language customers use in their correspondence:
<ul>
<li>items relating to regulatory matters that are usually out of your control (but if they arise frequently it suggests there is a need to provide some communication about the topic and how limited one is to be able to influence it); items relating to policy decisions (which being under your control you may decide to change) or items relating to operating procedures (again which are under your control).</li>
<li>If they use a lot of emotive words then it reveals the depth of their concern with this matter.</li>
<li>If customers mention that they are writing/emailing because they have been unsuccessful in getting through to you on the telephone or in person, or that they have not yet had a reply to an earlier call or letter, then you can be fairly certain that these customers are not 'satisfied' with the service from your company.</li>
</ul>
</li>
<li>If you have a call centre, or have outsourced customer service to another company, then you should ask for statistics about the number of calls received, the topics and the frequency with which each of the topics are being raised. It is also worth finding out the average amount of time a customer spends talking with an agent and if this varies by topic. You must be careful interpreting the data as some customers will 'store up' issues and then call the company to discuss all of them at the same time.</li>
<li>Calling a random selection of customers and <a title="Ask your customers what they think" href="/marketing/customer-care/understanding-your-customers/ask-your-customers-what-they-think">asking them what they think</a> of the products and services they have bought, or to follow up on a recent call they may have had from a sales rep to find out how happy they were with the call and the matters discussed. If your business involves subscription purchases, then contacting a sample of customers who have not renewed their subscription to find out why may provide useful information.</li>
<li>The internet can also provide access to useful information about not only your customers (if you are a larger company) but also about customer opinions about the industry or profession in which your firm operates. You must check that any data is relatively up to date. There are many different sources available, ranging from blogs by individuals about the service they have received (or from employees about their working conditions!) through to reports and other materials provided by individual companies, trade associations, etc.</li>
<li>It is also possible to conduct your own postal or <a title="How to conduct DIY surveys online" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-conduct-diy-surveys-online">web-based surveys</a>, but it is usually more cost efficient to use a <a title="Choosing a market research agency" href="/marketing/market-research/choosing-a-market-research-agency">professional market research agency</a> or trained consultant to conduct these on your behalf. However, if you do decide to <a title="How to create effective customer questionnaires" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires">conduct your own survey</a> then consider not only the content of the questionnaire but also its design and structure. In addition, do not underestimate how much time and effort will be involved not only in the pre-fieldwork stages but also afterwards when it comes to analysing and interpreting the date customers have provided. </li>
</ul>
<p>If you decide to use a <a title="Choosing a market research agency" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires">professional research individual</a> or company then look for companies or individuals that:</p>
<ul>
<li>Specialise in <a title="Understanding your customers' real needs" href="/marketing/customer-care/understanding-your-customers/understanding-your-customers-real-needs">measuring customer satisfaction</a> and <a title="Keeping customers- the importance of loyalty" href="/marketing/customer-care/customer-loyalty-schemes/keeping-customers-the-importance-of-loyalty">loyalty</a>, as they will be able to tell you which questions work better than others, the best order in which to ask questions, and will, of course, be able to provide the analysis and interpretation of the data your customers provide to them.</li>
<li>Have knowledge of your area of business or geographic location.</li>
<li>Are keen for your business (small and mid-sized agencies are more likely to be interested in your business and being small or mid-sized themselves will usually have a better understanding of the issues a small firm faces).</li>
</ul>
ArticleUnderstanding your customersMarket analysisPlanningFri, 03 Apr 2009 09:45:10 +0000Chris Pearce799 at http://www.marketingdonut.co.ukKeeping your eyes on the competitionhttp://www.marketingdonut.co.uk/marketing/market-research/market-analysis/keeping-your-eyes-on-the-competition
<p><strong><img style="margin-left: 10px; margin-right: 10px;" title="Keeping your eyes on the competition - picture of a viewfinder" src="/sites/default/files/Viewfinder_249x167.jpg" alt="A viewfinder{{}}" width="249" height="167" />Businesses need to spend more time watching their backs and looking at what their competitors are up to, according to market research expert Stephen Phillips</strong></p>
<p>Knowing what your competitors are doing is an important part of running a successful business. But it's an area that many companies ignore. That's not a good idea in today's difficult market conditions when your rivals could well be keeping their eyes on you and planning how to steal a share of your business.</p>
<p>"Competitor intelligence is something few firms do well, whether big or small. People tend not to do it," says Stephen Phillips, who has the delightful title of chief happiness officer at market research agency <a title="Tonic" href="http://www.tonicinsight.com/#home" target="_blank" rel="nofollow">Tonic</a>. "But there are some very simple things you can do to find out about your competitors."</p>
<h2>Desk research</h2>
<p>A lot of valuable intelligence can be gathered <a title="Do-it-yourself market research" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/do-it-yourself-market-research">without leaving your desk</a>. "First of all, you can visit their website and see how and where they are positioned. Order their brochure," says Phillips. "Just googling their name brings up all sorts of things, including blogs by disgruntled staff or customers as well as positive feedback."</p>
<p>Many companies have a presence on community and social networking sites such as <a title="Facebook" href="http://www.facebook.com" target="_blank" rel="nofollow">Facebook</a>. You can keep a close eye on what your rivals are doing by joining these groups yourself.</p>
<p>If a company is stock market listed, you can get huge amounts of information on the company, says Phillips. "Any listed company will have an investor relations section on their website where they will present their strategy and talk about what they're planning to do in the next few years, including new products and new markets they are entering."</p>
<p>If you and your competitors sell goods through third-party retailers, you need to check out their distribution strategy, advises Phillips. "Look and see where they distribute. If they are in Tesco and Sainsbury but not Waitrose you can see where the opportunities are."</p>
<h2>Customer enquiries</h2>
<p>The best source of information about your competitors is likely to be <a title="Ask your customer what they think" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think">your customers</a>. Talk to them about their perceptions of your business and others in the same area or sector. You could even do some mystery shopping and send a friend along to your competitor's shop or give them a call to see what they offer and how they handle customers. Although you may need to make several visits to form and accurate picture.</p>
<p>As consumers are increasingly shopping around for a bargain, <a title="Pricing" href="/marketing/marketing-strategy/pricing">price</a> is becoming a big issue and it's vital to know what your competitors are offering in terms of discounts. "Price is more of a justification for purchase then ever before," says Phillips. "So you have to keep an eye on your competitors at all times to see <a title="Keep up with competitors price cuts" href="/marketing/marketing-strategy/pricing/keep-up-with-competitors-price-cuts">what offers and deals they are doing</a>."</p>
<h2>Competitor analysis</h2>
<p>Competitor analysis can throw up some interesting findings. You may find that your competitors are not who you thought they were, says Phillips. "When you start looking at competitors, you often find who you think are your competitors are not actually your main competitors," he says.</p>
<p>"For example, if you have a tile shop on a local high street then you might think your main rival is the other independent tile shop up the road. But actually you are both probably competing with big out-of-town retailers as well as with online tile suppliers. In fact, having more than one type of supplier in the same area can help to bring more business your way as consumers feel they can get enough choice locally."</p>
<p>In fact, your competitors could be even more varied than you think. When consumers are making difficult choices about how to tighten their belts, you may be competing with totally different products or services for their spare cash. Take a young man who wants a new pair of trainers, says Phillips. "This young man is thinking of buying a pair of Nike trainers. Now, he won't change his mind and buy a different brand name but he may well decide to spend the money on a night out or an iPod instead."</p>
<p>Staying ahead of the competition is not easy but there's no point in burying your head in the sand. When it comes to your rivals, knowledge is power.</p>
<p>Written with expert input from Stephen Phillips of <a title="Tonic" href="http://www.tonicinsight.com/#home" target="_blank" rel="nofollow">Tonic</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Keep up with competitors price cuts" href="/marketing/marketing-strategy/pricing/keep-up-with-competitors-price-cuts">Keep up with competitors' price cuts</a><strong><a title="Keep up with competitors price cuts" href="/marketing/marketing-strategy/pricing/keep-up-with-competitors-price-cuts">&nbsp;</a></strong></li>
<li><a title="A guide to price comparison websites" href="/marketing/marketing-strategy/pricing/a-guide-to-price-comparison-websites">A guide to price comparison websites</a></li>
<li><a title="Listen and learn - increasing sales through customer feedback" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/listen-and-learn-increasing-sales-through-customer-feedback">Listen and learn - increasing sales through customer feedback</a></li>
</ul>
ArticleMarket analysisPlanningFri, 03 Apr 2009 09:26:39 +0000Chris Pearce790 at http://www.marketingdonut.co.ukNew product developmenthttp://www.marketingdonut.co.uk/marketing/market-research/new-product-research/new-product-development
<div class="introtext">
<p>A 'new product' can be a product or a service. It can be the next revolutionary computer chip, or a new holiday package put together by a travel agent. The point is, it is new, so it is often risky. </p>
<p>This briefing will not help you generate the ideas for completely new products, or recognise a winner when you see one. It focuses on the next stage - turning an idea into a product, once you have decided to go ahead with it. It covers: </p>
<ol>
<li> Reducing the risks as early as possible.</li>
<li> Setting a spec, a price and a schedule.</li>
<li> Running the project team and keeping costs under control.</li>
</ol>
</div>
<div class="section" id="section-1">
<h2><span class="number">1</span> Can you complete it?</h2>
<p class="intro">Apart from having the right idea in the first place, there are three essential ingredients for successful new product development.</p>
<div class="section" id="section-1.1">
<h3><span class="number">1.1</span> You need the relevant <strong>skills</strong>.</h3>
<ul>
<li> For example, if you are developing a new food product, having a technician create the right look and taste is only the start.
<p>Other issues include sourcing ingredients, the mass production process, quality control, packaging, customer trials, costing and pricing, and so on.</p>
</li>
</ul>
<p>You may need to include several people from outside your business.</p>
</div>
<div class="section" id="section-1.2">
<h3><span class="number">1.2</span> You need to commit sufficient <strong>resources</strong>.</h3>
<ul>
<li> If you can only afford a half-hearted attempt, do not begin. Without the critical mass of people, time and money invested, your project will be doomed.</li>
<li> If you commit too many resources, the rest of your business may suffer.</li>
<li> You may need finance.</li>
</ul>
</div>
<div class="section" id="section-1.3">
<h3><span class="number">1.3</span> You need <strong>personal commitment</strong> to the success of the project.</h3>
<ul>
<li> Though teamwork is important (<a href="#section-4">see 4</a>), in a smaller business it is often the owner-manager who must drive the project.</li>
</ul>
</div>
<p>In practice, most new product development is incremental - improving on an existing product. Compared with starting a product from scratch, this is relatively straightforward.</p>
</div>
<div class="section" id="section-2">
<h2><span class="number">2</span> Reducing the risks</h2>
<p class="intro">Identify major risks early on, so you can decide if the overall risk is worth the potential reward.</p>
<div class="section" id="section-2.1">
<h3><span class="number">2.1</span> Analyse all the <strong>market risks</strong>. For example: </h3>
<ul>
<li> Establish the likely volume of sales, and the marketing and sales cost of achieving each sale. </li>
<li>Is your target market growing or shrinking? Are there any foreseeable changes in your market that could affect the success of your product launch - such as new product safety legislation.</li>
<li> Are there any competing products already in the market that may block your route to entry? What are the strengths and weaknesses of the product? Can you offer something different and unique?</li>
</ul>
<p>The killer blow for a new product will often be something you have not even considered.</p>
</div>
<div class="section" id="section-2.2">
<h3><span class="number">2.2</span> Analyse the <strong>technical risks</strong>.</h3>
<ul>
<li> For example, do you need in invest in new equipment or technology to make the production of the new product possible?</li>
</ul>
</div>
<div class="section" id="section-2.3">
<h3><span class="number">2.3</span> It is extremely helpful to have a <strong>working prototype</strong> to test. This need not be an expensive process.</h3>
<ul>
<li> For mechanical devices you may need both a 'works-like model' and a 'looks-like model'. If you are improving on an existing product, you may only need to model the new features.</li>
<li> Start with a simple prototype such as a drawing. Good feedback at this stage can save time and money.</li>
</ul>
<p>Potential customers, suppliers and members of the development team can give extremely valuable feedback once they see what the product is and how it works.</p>
</div>
<div class="section" id="section-2.4">
<h3><span class="number">2.4</span> Avoid being the pioneer, who has to learn the hard way. Look for <strong>evidence</strong> of what others have achieved before you.</h3>
<ul>
<li> Look at recent developments in related products. Visit trade shows to get ideas of forthcoming products and trends before they hit the market.</li>
</ul>
</div>
<div class="section" id="section-2.5">
<h3><span class="number">2.5</span> Work out how to <strong>reduce each risk</strong> to an acceptable level.</h3>
<ul>
<li> For example, can your new design be patented or protected in some other way?</li>
</ul>
</div>
<div class="boxout" id="boxout-2">
<h4>Non-starters</h4>
<p class="box-intro">While a good product idea is no guarantee of success, a bad product idea is a guarantee of failure. </p>
<p class="box-intro">Here are some of the fatal flaws.</p>
<p> You cannot sell at the <strong>price or volume</strong> necessary to make a profit.</p>
<ul>
<li> For example, UK shoe manufacturers face serious price competition from firms at home and abroad. Even the most stylish new line may have to be discounted.</li>
</ul>
<p> Your product can easily be <strong>copied</strong>.</p>
<ul>
<li> For example, you may invest heavily to develop a new type of service and build up a market for it. Competitors can launch 'me-too' services at lower prices, as they have not incurred all the costs.</li>
</ul>
<p> You lack <strong>market power</strong>.</p>
<ul>
<li> For example, a new piece of software may be the best in the market, but it could be doomed to failure if you lack an effective route to market.</li>
</ul>
<p> Your product is <strong>over-ambitious</strong>.</p>
<ul>
<li> For example, a new methane car would require breakthroughs on several fronts - engineering the car itself, persuading petrol stations to offer methane fuel, persuading consumers to buy the car and persuading someone to finance the project in the first place.</li>
</ul>
</div>
</div>
<div class="section" id="section-3">
<h2><span class="number">3</span> Know what you are doing</h2>
<p class="intro">You need to know the what, when and how much of your new product before you can turn your idea into a project.</p>
<div class="section" id="section-3.1">
<h3><span class="number">3.1</span> Start by defining a basic <strong>specification</strong> ('spec') for the product. List the features and how they translate into specific requirements.</h3>
</div>
<div class="section" id="section-3.2">
<h3><span class="number">3.2</span> Make sure you have a <strong>unique selling proposition</strong> ('USP') - a reason for customers to switch over to your product. </h3>
<ul>
<li> Ask yourself what will make customers choose your product over a rival's.</li>
</ul>
</div>
<div class="section" id="section-3.3">
<h3><span class="number">3.3</span> Plan the <strong>design</strong> of your product. This can be crucial to its success. </h3>
<ul>
<li> Use in-house or external designers and get them to sign confidentiality agreements.</li>
</ul>
</div>
<div class="section" id="section-3.4">
<h3><span class="number">3.4</span> Pencil in a <strong>launch date</strong>.</h3>
<ul>
<li> When should the product be ready? If it is delayed, how will that affect pricing, sales volumes and profitability?
<p>Unless you and a competitor are racing to launch similar products, hitting a particular launch deadline may not be vital.</p>
</li>
<li> Plan to launch a pilot version of the product with a few favoured customers, to identify and sort out the inevitable problems before the main launch.
<p>This also helps you build up your order book before the launch.</p>
</li>
<li> If you need any approvals or certification (eg for any electrical product), book the product tests. Ask if the approvals body can also test your prototype to identify any problems early on.</li>
</ul>
</div>
<div class="section" id="section-3.5">
<h3><span class="number">3.5</span> Decide on the likely <strong>selling price</strong> for the product. Based on this, work out what your maximum unit cost of production can be.</h3>
<ul>
<li> Many new products are based on achieving cost reduction. The aim is to provide the same quality of product at a lower price and with better profit margins.</li>
<li> Other products rely on superior design or technology to win market share, and can be priced at a premium.
<p>You still need to build to a price, to avoid pricing your product out of the market.</p>
</li>
</ul>
</div>
<div class="section" id="section-3.6">
<h3><span class="number">3.6</span> Estimate <strong>volumes</strong> and delivery demands.</h3>
<ul>
<li> How many will you make and sell each month? What will typical order sizes be?
<p>How quickly will customers need delivery?</p>
</li>
<li> If you will sell the new product in volume, it is important to achieve a low unit cost of production. To do this, you may have to invest heavily in the development stage.</li>
</ul>
</div>
<div class="boxout" id="boxout-3">
<h4>Efficient manufacturing</h4>
<p class="box-intro">Develop manufacturing plans at the same time as developing a new product design.</p>
<p> Test proposed designs to see if they can be manufactured <strong>cost-effectively</strong>.</p>
<p> Design new products with an eye to <strong>minimising</strong> the number of components.</p>
<ul>
<li> Try to reduce the complexity of assembly.</li>
</ul>
<p> Use <strong>standard parts</strong> wherever possible. They are inexpensive and easy to source. </p>
<ul>
<li> Standardisation is especially important if production volumes will be low.</li>
<li> Consider using parts that you already use in existing products.</li>
</ul>
<p> Avoid reinventing the wheel. Where possible, <strong>buy in components</strong> that can be sourced at competitive prices to slash development costs and lead times.</p>
</div>
</div>
<div class="section" id="section-4">
<h2><span class="number">4</span> Your team</h2>
<p class="intro">Hand pick your team to suit the project. </p>
<div class="section" id="section-4.1">
<h3><span class="number">4.1</span> Every new product needs a <strong>product champion</strong> to lead the team. </h3>
<p>This individual should regard the product as his or her 'baby'.</p>
<ul>
<li> Without such a champion, the project will lack the passion and perseverance needed to overcome the inevitable setbacks.</li>
<li> Give the team leader the authority to run the project (within an agreed budget and timetable), without interference.</li>
</ul>
</div>
<div class="section" id="section-4.2">
<h3><span class="number">4.2</span> Create a team with all the <strong>skills</strong> needed to make the project a success (<a href="#section-1.1">see 1.1</a>).</h3>
<ul>
<li> Involving a complete team from the start allows people to work in parallel, reducing the overall development lead time.
<p>Without this approach, problems can remain hidden until late in the day. </p>
</li>
<li> Involve key customers, if appropriate.</li>
<li> Involve any suppliers that will provide key components of the product.</li>
</ul>
</div>
<div class="section" id="section-4.3">
<h3><span class="number">4.3</span> Make sure all the team members are agreed about the main <strong>objectives</strong> that are based on the basic spec (<a href="#section-3.1">see 3.1</a>).</h3>
</div>
<div class="section" id="section-4.4">
<h3><span class="number">4.4</span> Be prepared for <strong>negativity</strong> and keep the team motivated.</h3>
<ul>
<li> If anyone is unco-operative or has a 'can't-do' attitude, this will have a negative effect on the rest of the team. Avoid including such a person in the first place.</li>
<li> Most projects go through a honeymoon period, while you are generating ideas. Putting these ideas into practice can be a long and tiring process.</li>
<li> Make it clear that there will be failures along the way, so individuals are neither afraid of making mistakes, nor depressed by setbacks when they occur.<br />
<p/></p/></li>
</ul>
</div>
</div>
<div class="section" id="section-5">
<h2><span class="number">5</span> Project management</h2>
<p class="intro">Having formed the project team and agreed that the new product is commercially and technically viable, you need to get the details right.</p>
<div class="section" id="section-5.1">
<h3><span class="number">5.1</span> The <strong>team leader</strong> should decide the key parameters for the product specification.</h3>
</div>
<div class="section" id="section-5.2">
<h3><span class="number">5.2</span> Where appropriate, allow <strong>each individual</strong> to decide the more detailed specifications, within these agreed parameters.</h3>
<ul>
<li> By allowing individuals to take personal responsibility for each part of the project, you end up with a highly-motivated team.</li>
<li> Use a series of SMART objectives (specific, measurable, agreed, realistic, time-limited) to control progress. This helps to identify problem areas that you can then focus on.</li>
</ul>
</div>
<div class="section" id="section-5.3">
<h3><span class="number">5.3</span> Draw up a <strong>critical path</strong> diagram that shows the order in which tasks must be completed.</h3>
<ul>
<li> By agreeing some working assumptions, your team can start work on different bits of the jigsaw.</li>
<li> For major projects involving several people, use a project management package. For example, Microsoft Project.
<p>This allows you to schedule in factors such as people's other commitments. You can then spot likely delays and bottlenecks.</p>
</li>
</ul>
</div>
<div class="section" id="section-5.4">
<h3><span class="number">5.4</span> As the project proceeds, you may need to <strong>adjust</strong> the spec and planning assumptions.</h3>
<ul>
<li> When you show customers the prototype, you may be forced to re-think the whole product, in the light of feedback received.</li>
<li> Keep asking yourself if the project will meet its commercial objectives.</li>
</ul>
</div>
</div>
<div class="section" id="section-6">
<h2><span class="number">6</span> Cost control</h2>
<p class="intro">Without planning and monitoring, costs can spiral out of control.</p>
<div class="section" id="section-6.1">
<h3><span class="number">6.1</span> Use <strong>top-down</strong> cost estimating if you have done a comparable project before.</h3>
<ul>
<li> Using the previous project as a benchmark, you might double the cost (if the new project will take twice as long, using the same number of people) then add in an inflation factor.</li>
</ul>
</div>
<div class="section" id="section-6.2">
<h3><span class="number">6.2</span> Use <strong>bottom-up</strong> cost estimating if there is no comparable project.</h3>
<ul>
<li> Each team member calculates the cost of his or her part of the project. These costings are agreed with the team leader.
<p>Add up these costings and add in a contingency factor to estimate the total cost. This is the budget for the project.</p>
</li>
<li> Bottom-up estimates often seriously underestimate the costs, because tasks take much longer than expected.</li>
</ul>
</div>
</div>
<div class="section" id="section-7">
<h2><span class="number">7</span> Long-term planning</h2>
<p class="intro">You need to adapt and innovate constantly to stay ahead of the competition. </p>
<div class="section" id="section-7.1">
<h3><span class="number">7.1</span> <strong>Plan</strong> for new product development on a scheduled basis.</h3>
<ul>
<li> Extend product life cycles by repackaging, adding new features and finding new applications for the product.</li>
<li> Do not wait until competitors launch their 'next generation' product before starting on your own.</li>
</ul>
</div>
<div class="section" id="section-7.2">
<h3><span class="number">7.2</span> <strong>Budget</strong> for new product development.</h3>
<ul>
<li> Put aside funds to make improvements and for totally new products.</li>
<li> Set yearly targets for the number of improvements or new products you aim to complete.</li>
</ul>
</div>
</div>
BriefingNew product researchProduct developmentPlanningFri, 03 Apr 2009 08:57:26 +0000Chris Pearce772 at http://www.marketingdonut.co.ukNew product development FAQshttp://www.marketingdonut.co.uk/marketing/market-research/new-product-research/new-product-development-faqs
<p class="atom-faq-title"><strong>11 FAQs on developing new products.</strong></p>
<ol>
<li><strong><a href="#1"></a><a href="#1"></a><a name="top"></a><a href="#1">Apart from a good idea, what do we need for successful product development?</a></strong></li>
<li><strong><a href="#2">Should we try to develop completely new products, or to improve existing ones?</a></strong></li>
<li><strong><a href="#3">What are the main risks in new product development?</a></strong></li>
<li><strong><a href="#4">How can we reduce the risks of new product development?</a></strong></li>
<li><strong><a href="#5">Are there any easy ways of telling that a product idea is unlikely to succeed?</a></strong></li>
<li><strong><a href="#6">What are the main stages in new product development?</a></strong></li>
<li><strong><a href="#7">How do we manage the product development process?</a></strong></li>
<li><strong><a href="#8">Is it worth creating a prototype?</a></strong></li>
<li><strong><a href="#9">Who should be involved in new product development?</a></strong></li>
<li><strong><a href="#10">How can we reduce production costs for a new product?</a></strong></li>
<li><strong><a href="#11">How does new product development fit into our overall business strategy?</a></strong></li>
</ol>
<h2><a name="1"></a>1.&nbsp; Apart from a good idea, what do we need for successful product development?</h2>
<p>You need a complete range of relevant skills. As well as the technical skills involved in developing the product, these include:</p>
<ul>
<li><a title="Market research" href="/marketing/market-research">Market research</a> skills to ensure that your product meets customer demands.</li>
<li><a title="Powerful design: what's the difference that makes a difference?" href="/blog/2011/05/powerful-design-whats-difference-makes-difference">Design skills</a> for the product and its packaging.</li>
<li>Purchasing and production skills.</li>
<li>Financial skills for project budgeting, costing and product pricing.</li>
</ul>
<p>You may need to involve people from outside your business for some of these skills. For example, it's common for businesses to use <a title="Employing a designer" href="/marketing/direct-marketing/creating-a-mailshot/employing-a-designer">external designers</a>, though you must take care to ensure that you retain the intellectual property rights.</p>
<p>As well as the skills, you need to commit sufficient resources to the project, in terms of both money and people's time. A personal commitment to the success of the project is also important to drive it forward.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="2"></a>2.&nbsp; Should we try to develop completely new products, or to improve existing ones?</h2>
<p>In practice, most new products are improvements on existing products. Although improving an existing product might seem to have less potential than developing a completely new product, it is often enough to give you a competitive edge in a proven market.</p>
<p>Improving existing products is generally easier and less risky than developing completely new ideas. You are likely to have a better understanding of the technologies involved and <a title="Understanding your customers" href="/marketing/customer-care/understanding-your-customers">customer preferences</a> for that kind of product. The development process is usually less complex, requires less investment and can be completed more quickly. That said, if you manage to successfully develop and protect a ground-breaking innovation - something that really is a first - the rewards can be huge.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="3"></a>3.&nbsp; What are the main risks in new product development?</h2>
<p>With any new product, there is a risk that you may not produce <a title="Understanding your customers" href="/marketing/customer-care/understanding-your-customers">what customers want</a>. This risk is typically higher when new product ideas are based on the availability of new technologies or your own inspiration rather than being customer-led. So it's a good idea to aim to solve or improve a customer experience rather than merely rehash existing products.</p>
<p>During the development process, you may need to overcome technical hurdles. There are also likely to be a range of other operational risks: for example, ensuring that you have a secure supply of reliable components.</p>
<p>Finally, there is the financial risk if your new product doesn't generate sufficient demand at a <a title="Pricing" href="/marketing/marketing-strategy/pricing">price</a> that is profitable. Bear in mind that sales income will need to cover the cost of product development, and that you may face additional marketing costs to stimulate demand for your new product.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="4"></a>4.&nbsp; How can we reduce the risks of new product development?</h2>
<p>Wherever possible, look for evidence that you are working along the right lines. <a title="Market research" href="/marketing/market-research">Market research</a> can help ensure that there is sufficient customer demand, that you are <a title="Understanding your customers" href="/marketing/customer-care/understanding-your-customers">meeting customer requirements</a> and that you set the <a title="Pricing" href="/marketing/marketing-strategy/pricing">right price</a>. It can also be a good idea to produce a prototype (see 8).</p>
<p>If your innovation is entirely ground-breaking then research might not help because there might be no near comparison to measure your idea against. Those that were asked to evaluate the first telephone, for example, said that it had no commercial viability!</p>
<p>It's often also a good idea to limit how ambitious your project is. It may not be worth being the first with a completely new idea. Similarly, you might be better off designing a new product to use existing components: even if new components might make an even better product, they also increase the risk.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="5"></a>5.&nbsp; Are there any easy ways of telling that a product idea is unlikely to succeed?</h2>
<p>An over-ambitious project may well fail, either because it is technically too complex or because it requires a level of resources that you cannot afford or that isn't justified by the likely returns. In cases like this, it's worth considering whether a less ambitious project would be more likely to succeed.</p>
<p>Even if you manage to develop a new product, you will only be successful if the product is profitable. This is less likely to happen if:</p>
<ul>
<li>You operate in a market where customers resist paying a significant <a title="How do you market an expensive item" href="/marketing/sales/sales-techniques-and-negotiations/how-do-you-market-an-expensive-item-">price premium</a> for new products.</li>
<li>Your customer base is small and you find it difficult to reach new customers.</li>
<li>It's easy for competitors to copy your new product.</li>
</ul>
<p><a href="#top">Back to top</a></p>
<h2><a name="6"></a>6.&nbsp; What are the main stages in new product development?</h2>
<p><a title="Understanding your customers" href="/marketing/customer-care/understanding-your-customers">Customers</a> are a good starting point. Look at what they want from a new or improved product. Some businesses like to think in terms of a 'unique selling proposition' (USP) - a clear reason why customers should switch to your product.</p>
<p>Prepare a product specification (spec) listing what features your product must have, and how they translate into specific requirements. For example, a product might need to be strong but also lightweight. You will also want to specify other constraints: for example, whether the product needs to match other products in your range or to meet specific legal requirements.</p>
<p>The design phase uses this spec to design the product. Effective design is wide-ranging. As well as fulfilling the product spec, it includes considering how component and processing costs can be minimised.</p>
<p>As the design progresses, you may have one or more pre-launch stages when you test the product. For example, you might develop a prototype (<a href="#8">see 8</a>) or you might launch a pilot version of the product to a few customers to help iron out problems and build demand. Some products need to be submitted for product testing and certification.</p>
<p>Finally, you have the launch and roll-out of the product.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="7"></a>7.&nbsp; How do we manage the product development process?</h2>
<p>Choose a product champion with the enthusiasm and energy to make things happen. Give this individual the authority to run the project (within an agreed budget) without continual interference. Set up a project team that includes people with all the relevant skills (<a href="#9">see 9</a>). Involve a complete team from the start so that people can work in parallel and problems can be spotted at an early stage.</p>
<p>Make sure that everyone in the team is agreed on the main objectives, based on the product specification. Use this to delegate specific areas of responsibility and objectives to individuals. Agree an overall budget and budgets for different parts of the project.</p>
<p>Draw up a critical path showing what tasks need to be completed, in what order. Build in a process of regular project review so that you can check progress and see how your plans need to be changed.</p>
<p>Work to keep the team motivated. Be prepared for setbacks along the way, and let team members know that you expect them: otherwise, individuals may be afraid of making mistakes and demoralised when problems arise. Try to maintain a 'can do' attitude; if possible, avoid including negative or obstructive individuals in the team.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="8"></a>8.&nbsp; Is it worth creating a prototype?</h2>
<p>It can be very helpful to have a working prototype. You can use a prototype to check that a new design works mechanically. You can also use a prototype to assess customer reaction to the look and feel of a product.</p>
<p>It may be worth going through more than one prototyping stage. For example, you could use a sketch at an early stage to gauge initial reactions to an outline design before investing heavily in developing it. If you are improving a product, you might produce models that demonstrate the improvements rather than a full prototype.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="9"></a>9.&nbsp; Who should be involved in new product development?</h2>
<p>Include people from all areas of the business. For example, including people from marketing, production and finance helps ensure that the project delivers a product that customers want, that you can produce and that is financially viable.</p>
<p>Make sure that your product development team includes all the skills needed. This may mean including external consultants with specific skills - for example, if you do not have in-house <a title="Employing a designer" href="/marketing/direct-marketing/creating-a-mailshot/employing-a-designer">design</a> skills. Once again, you must take care to ensure that you <a title="Ten ways to protect your intellectual property" href="/marketing/marketing-strategy/branding/ten-ways-to-protect-your-intellectual-property">retain the intellectual property rights</a>.</p>
<p>You may want to consider involving key customers for their ideas and feedback. You may also want to involve any suppliers who will be providing key components.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="10"></a>10.&nbsp; How can we reduce production costs for a new product?</h2>
<p>Crucially, you should develop your manufacturing plans at the same time as you design the product, so that efficient manufacturing is part of the design.</p>
<p>Aim to minimise the number of components and the complexity of assembly. Where possible, use inexpensive standard parts that you already use in existing components or that are easy to source.</p>
<p>Look for opportunities to subcontract work or to buy in subassemblies, rather than making everything yourself. This can help to simplify the product development process as well as reducing your eventual production costs.</p>
<p>If you use subcontractors to assist developmental work, check that it will be you who <a title="Ten ways to protect your intellectual property" href="/marketing/marketing-strategy/branding/ten-ways-to-protect-your-intellectual-property">retains the intellectual property rights</a>.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="11"></a>11.&nbsp; How does new product development fit into our overall business strategy?</h2>
<p>New product development is an essential part of your business strategy. Although new product development carries risks, not developing new products is even riskier: over time, competing products will outperform and you will lose customers.</p>
<p>Plan for new products on a scheduled basis. Look for opportunities to extend the lives of existing products: for example, by repackaging or adding new features. Don't wait for competitors to launch their new products before you start working on yours.</p>
<p><a href="#top">Back to top</a></p>
FAQsNew product researchProduct developmentPlanningFri, 03 Apr 2009 08:45:46 +0000Chris Pearce768 at http://www.marketingdonut.co.ukWhy you must test for successhttp://www.marketingdonut.co.uk/marketing/market-research/new-product-research/why-you-must-test-for-success
<p><strong><img style="float: right; margin-left: 10px; margin-right: 10px;" title="Why you test for success - test tubes" src="/sites/default/files/testtubes_249.png" alt="Test tubes{{}}" width="249" height="167" />New product development can be a risky business and there are no guarantees that your product will sell. To maximise your chances of success you must conduct thorough - and objective - product testing </strong></p>
<p>Many entrepreneurs refer to their products as their babies. It's hardly surprising. Like parents, they have devoted much of their time to raising their offspring ready for the day when they leave home (or hit the shelves).</p>
<p>But when it comes to product development, you cannot afford to get too personal. Taking your idea from initial concept to finished product is a difficult journey and requires a good degree of objectivity. To give your product the best chance in the market, you need to test it thoroughly.</p>
<p>"It is absolutely vital that you test," says product development expert, <a title="Jenny Covey" href="/experts/jenny-covey">Jenny Covey</a>, director of <a title="Javelin Marketing Services" href="http://www.javelinmarketing.co.uk/" target="_blank" rel="nofollow">Javelin Marketing Services</a>. "It's easy to invest a lot of time and money in a product only to find that, for some reason, it just does not sell."</p>
<p>Keeping an open mind is of paramount importance, stresses Covey. "Your views can easily be clouded by personal opinion. But you have to be objective."</p>
<p>Testing is the <a title="Product research: Dos and don'ts" href="/marketing/market-research/new-product-research/product-research-dos-and-don-ts">best way to get straight answers</a>. And the results can be surprising, she explains. "Once when I was trying to source a component for a car, I went to Eastern Europe to meet a supplier. I saw the makers producing this piece by hand in what was basically a shed. I thought the product was right and they saw me as a saviour."</p>
<p>Covey's employers were planning to buy a manufacturing licence from the company. But when she tested the component with car-makers in the UK, she found they weren't convinced. "I was in danger of letting my heart rule my head."</p>
<p>Assumptions can work both ways, she adds. "A chap in his 20s came up with a product idea and was prepared to spend money on testing it. I was happy to test it but felt it would not sell and told him so. But I was completely wrong. <a title="Ask your customers what they think" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think">The research</a> showed that there was a big market for the product among teenagers."</p>
<p>The timing of product testing is very important. "You need to do quite a lot of test work at the idea generation stage," warns Covey. "Most products start as a huge melting pot of ideas before they become fully formed. That's when you should start testing. You have to screen those initial ideas."</p>
<p>There are many factors to consider. You need to research the technical feasibility of manufacturing the product and establish what the costs are. At the same time, you need to talk to customers to find out what they think of the product and how much they'd be <a title="How to price your service" href="/marketing/marketing-strategy/pricing/how-to-price-your-service">willing to pay</a> for it. Also ask yourself, does it fit with the rest of your business? And do you have the right support from third parties such as dealers or suppliers?</p>
<p>"Pre-market testing looks at the product from all sides: business, technical and financial," explains Covey. "This pre-development stage is very important. You have to <a title="New product development" href="/marketing/market-research/new-product-research/new-product-development">look at the product from all angles</a>. The specification will be constantly evolving. You might have to sacrifice one thing for another."</p>
<p>Some entrepreneurs, whether driven by dogged self-belief or self-delusion, may not be prepared to invest in product testing. That is a false economy, concludes Covey. "I know some people go to market without testing and succeed but I would say it was completely inadvisable. It's important to be driven by your head not your heart."</p>
<p>Written with expert input from <a title="Jenny Covey" href="/experts/jenny-covey" target="_self">Jenny Covey</a> of <a title="Javelin Marketing Services" href="http://www.javelinmarketing.co.uk/" target="_blank" rel="nofollow">Javelin Marketing Services</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="New product development" href="/marketing/market-research/new-product-research/new-product-development">New product development</a></li>
<li><a title="Ask your customers what they think" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think">Ask your customers what they think</a></li>
<li><a title="Product research: Dos and don'ts" href="/marketing/market-research/new-product-research/product-research-dos-and-don-ts">Product research: Dos and don'ts</a></li>
</ul>
ArticleNew product researchPlanningFri, 03 Apr 2009 08:25:02 +0000Chris Pearce767 at http://www.marketingdonut.co.ukSix ways to test your products on a shoestring budgethttp://www.marketingdonut.co.uk/marketing/market-research/new-product-research/six-ways-to-test-your-products-on-a-shoestring-budget
<p><strong>Stephen Phillips of <a title="Tonic" href="http://www.tonicinsight.com/#home" target="_blank" rel="nofollow">Tonic</a>, reveals how you can test your products thoroughly without spending a fortune</strong></p>
<h2>Get some feedback from friends and family</h2>
<p>But not your friends and family - get a friend to ask their friends and family for feedback. Don't ask the questions yourself. While it may seem easy to ask your own friends and family, it is not advisable. They will see the passion in your eyes and the danger is that they will be over-enthusiastic. They may also want to avoid hurting your feelings and feel reluctant to tell you the truth if they don't like your products. As a result, you'll get a heightened belief in your product and that could send you on the wrong track.</p>
<h2>Approach people in your target market</h2>
<p>If your product or service is very targeted - for example, if you are only aiming at young, wealthy women - then you need to tap into the right network. If you are going for a niche, it's good to get a friendship group together. Find someone who <a title="Why it pays to profile your customers" href="/marketing/marketing-strategy/your-target-market/why-it-pays-to-profile-your-customers">fits the profile</a> of your ideal customer and ask them to bring along a group of like-minded friends. </p>
<p>The ideal group size is about five to eight people. You can ask about all aspects of your offering including the product itself, its positioning, distribution strategy, price, packaging and promotion and its strengths and weaknesses. Again, it helps if you don't ask the questions yourself but have someone else do it. In a group it's more important that people can express what they feel so you want a free-flowing conversation, not a rigid structure. It's worth doing two or more sessions to get a spread of opinion. You could offer the participants a few bottles of wine as a thank you.</p>
<h2>Listen to those with strong views</h2>
<p><a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">Qualitative research</a> such as focus groups is not always about finding common ground. If four people love your product and two hate it, that's much better than six people who like it a bit. Those four are much more likely to buy it. Listen to those that love the product and ask them why - you can use what they love to focus on in your promotion. Equally, honest feedback from people who don't like your product can help you refine and improve your offer. You need to listen to the disparate views and find out what's motivating them.</p>
<h2>Do some quantitative research</h2>
<p>While <a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">qualitative research</a>, such as focus groups, can help you to fine-tune your product early on in the development process, towards the end of this stage you need to do some <a title="What is quantative research research?" href="/marketing/market-research/what-is-quantitative-research-">quantitative testing</a>. So if you've got a new type of bicycle, for example, and you've had lots of feedback on the style and design and you're ready to go, you can then do the quantitative work to find out if there's a big enough market for it and who to target it at. If 27% love it, you need to find out who they are, <a title="Why it pays to profile your customers" href="/marketing/marketing-strategy/your-target-market/why-it-pays-to-profile-your-customers">work out their profile</a>, find out where they are and target them. A <a title="Questionnaires, surveys and focus groups" href="/marketing/market-research/questionnaires-surveys-and-focus-groups">simple survey</a> can be done on the phone, on paper or on your website to give you these kinds of numbers.</p>
<h2>Ask a question in an omnibus survey</h2>
<p>If your product or service can be summed up in a sentence, you can get cheap research by buying a question in an omnibus survey by the likes of TNS or Ipsos Mori. These surveys typically ask 1,000 people who form a representative sample of UK consumers as a whole. This approach makes sense if you have a product that's aimed at a mass market. You can describe your product and ask how likely it is that the respondents would buy it on a scale of one to ten. One question like this will cost you about £300-£350. It's important to think long and hard about your question. If you get it wrong, you will have wasted time and money.</p>
<h2>Build ongoing relationships</h2>
<p>What large companies like Procter and Gamble are now doing is creating communities of people from their <a title="Your target market" href="/marketing/marketing-strategy/your-target-market">target market</a> and asking them to get involved by <a title="How to use customer feedback to improve your business" href="/marketing/customer-care/understanding-your-customers/how-to-use-customer-feedback-to-improve-your-business">providing feedback</a> on an ongoing basis. You could tap into a group of people or an <a title="Ten ways to use social media to improve your customer service" href="/marketing/internet-marketing/social-media-and-online-networking/ten-ways-to-use-social-media-to-improve-your-customer-service">online community</a> and create a dialogue with them. Ask them to help over a period of time so you can develop the product and your marketing strategy accordingly. The advantage of this approach is that these people often become advocates for your product as well.</p>
<p>Written by Stephen Phillips of <a title="Tonic" href="http://www.tonicinsight.com/#home" target="_blank" rel="nofollow">Tonic</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="What is quantative research research?" href="/marketing/market-research/what-is-quantitative-research-">What is quantative research?</a></li>
<li><a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">What is qualitative research?</a></li>
<li><a title="Product research: Dos and don'ts" href="/marketing/market-research/new-product-research/product-research-dos-and-don-ts">Product research: Dos and don'ts</a></li>
</ul>
ArticleNew product researchPlanningFri, 03 Apr 2009 08:20:28 +0000Chris Pearce765 at http://www.marketingdonut.co.ukProduct research: Dos and don'tshttp://www.marketingdonut.co.uk/marketing/market-research/new-product-research/product-research-dos-and-don-ts
<p><strong>Product testing can help you weed out product ideas that have no realistic prospect of success and refine those that do, making them attractive to customers and increasing sales. So what are the keys to successful product testing? </strong></p>
<h2>Do:</h2>
<ul>
<li>Start testing at <strong>the ideas stage</strong>.</li>
<li><strong>Be objective</strong>.</li>
<li>Check the <strong>technical feasibility</strong> of your product - is it fit for purpose?</li>
<li>Talk to suppliers and manufacturers - <strong>can it be made</strong>?</li>
<li>Find out exactly how much it would <strong>cost</strong> to make - will that leave leave you with a healthy margin?</li>
<li>Be prepared to <strong>walk away</strong> if the figures don't add up.</li>
<li>Use an impartial third party to <strong>conduct research and testing</strong>.</li>
<li><strong>Ask customers</strong> what they think of the product and its specification.</li>
<li>Ask customers what they would <strong>pay</strong> for it.</li>
<li>Adapt your product to meet the <strong>requirements of the market</strong>.</li>
<li>Talk to <strong>retailers</strong> or dealers about stocking your product.</li>
</ul>
<h2>Don't:</h2>
<ul>
<li><strong>Wait</strong> until product launch before you test the feasibility of your product.</li>
<li>Conduct <strong>poorly planned</strong> or insufficiently in-depth research -&nbsp;it will not provide an accurate picture.</li>
<li><strong>Assume</strong> that everyone feels the same as you about your product.</li>
<li><strong>Ignore negative research</strong> findings.</li>
<li>Let your heart rule your head and personal feelings to <strong>cloud your judgement</strong>.</li>
</ul>
<p>Written by <a title="Jenny Covey" href="/experts/jenny-covey" target="_self">Jenny Covey</a> of <a title="Javelin Marketing Services" href="http://www.javelinmarketing.co.uk/" target="_blank" rel="nofollow">Javelin Marketing Services</a>.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Six ways to test your products on a shoestring budget" href="/marketing/market-research/new-product-research/six-ways-to-test-your-products-on-a-shoestring-budget">Six ways to test your products on a shoestring budget</a></li>
<li><a title="New product development: 11 FAQs" href="/marketing/market-research/new-product-research/new-product-development-11-faqs">New product research: 11 FAQs</a></li>
</ul>
ArticleNew product researchPlanningFri, 03 Apr 2009 08:07:22 +0000Chris Pearce762 at http://www.marketingdonut.co.ukMarket research survey accuracy ready reckonerhttp://www.marketingdonut.co.uk/tools/market-research-survey-accuracy-ready-reckoner
<p>Use B2B International's <a title="Sample size accuracy tool" href="http://www.b2binternational.com/techniques-tools/interactive-research-tools/sample-accuracy-calculator/" target="_blank" rel="nofollow">market research survey accuracy ready reckoner</a> to assess how statistically accurate the results of your survey are likely to be.</p>
ToolQuestionnaires, surveys and focus groupsPlanningCalculatorFri, 03 Apr 2009 08:01:29 +0000Chris Pearce760 at http://www.marketingdonut.co.ukHow to do market research onlinehttp://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-do-market-research-online
<p><strong>Online consumer panels allow small firms to do research quickly and cheaply but they must be used with caution says Charles Jennings</strong></p>
<p>If you think that market research has to be expensive, think again. Small firms can now do market research online and they don't have to spend a fortune.</p>
<p><a title="DIY surveys online" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-conduct-diy-surveys-online">Online research</a> is an important tool alongside more traditional research methods, such as face-to-face and telephone interviews and <a title="How to create effective customer questionnaires" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires">paper-based surveys</a>.</p>
<p>Respondents like online surveys because they are easy. Market researchers are finding that, given the choice, many respondents prefer to complete a survey online than on paper.</p>
<p>Research providers, including <a title="YouGov" href="http://yougov.co.uk/" target="_blank" rel="nofollow">YouGov</a>, <a title="Ipsos Mori" href="http://www.ipsos-mori.com/" target="_blank" rel="nofollow">Ipsos Mori</a> and <a title="Research Now" href="http://www.researchnow.com/en-US.aspx" target="_blank" rel="nofollow">Research Now</a>, have large panels of consumers that are willing to respond to questionnaires online on a regular basis. Firms can submit a number of questions to these panels at a relatively low cost.</p>
<p>The panels themselves have hundreds of thousands of people. Firms can pose their questions to an appropriate segment of the panel, based on a specific demographic or socio-economic group.</p>
<p>This can be a successful method of conducting consumer research. It is quick, cheap and the computer churns out the analysis as it goes along. At a moment's notice, a marketing director can go online and find the results of his survey.</p>
<p>However, professional researchers do have some reservations about internet research because samples may not be representative. That is less of a concern now as so many people use the internet but there is still a fear among researchers that respondents do not represent the population as a whole.</p>
<p>But the affordability of this type of research means many firms are prepared to overlook these concerns. In order to make sure your research is robust, it is a good idea not to put all your eggs in one basket. By using some <a title="What is qualitative research?" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/what-is-qualitative-research-">qualitative research</a> such as focus groups or doing face-to-face surveys, you can validate your online findings.</p>
<p>In addition, while these panels allow you to question large numbers of consumers, there are less opportunities for business-to-business research. However, there business-to-business firms can always use an agency or do their own research on their website.</p>
<p>The beauty of running your own survey is that you can ask specific questions and address them directly to your target market. This is ideal for businesses that trade online and have a lot of traffic on their website. However, it is more expensive to set up and run compared to joining an existing panel.</p>
<p>Market research should be an essential part of any firm's strategy in order to produce the right products and services at the right price and market them to the best prospects. Now, thanks to online research panels, small firms can gather useful intelligence quickly, easily and cheaply.</p>
<p>Written by Charles Jennings.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Do-it-yourself market research" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/do-it-yourself-market-research">Do-it-yourself market research</a></li>
<li><a title="How to conduct DIY surveys online" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-conduct-diy-surveys-online">How to conduct DIY surveys online</a></li>
</ul>
ArticleQuestionnaires, surveys and focus groupsPlanningFri, 03 Apr 2009 07:48:41 +0000Chris Pearce756 at http://www.marketingdonut.co.ukDo-it-yourself market researchhttp://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/do-it-yourself-market-research
<p><img style="margin-left: 10px; margin-right: 10px;" title="Do-it-yourself market research - man with a report" src="/sites/default/files/Manwithreport_249x167.jpg" alt="Man with report{{}}" width="249" height="167" /><strong>Market research is a vital part of any business strategy and most entrepreneurs wish they had more money to spend on it. But when budgets are tight, you can do some do-it-yourself research to help you plan ahead</strong></p>
<h2>What market information do you already have?</h2>
<p>Many small firms are already doing market research, they just don't call it that. When you consult staff, chat with customers or ask friends to give you feedback on your products, you are conducting informal market research. This kind of do-it-yourself market research can provide you with enough information to help you improve your business planning.</p>
<p>It doesn't have to cost much but you do need to do it thoroughly. You need to find out what you already know about your products, your competitors and the market. Look at your own data and statistics, see what category your products and services are in and establish where you fit in the market.</p>
<p>You also need to find out what you don't know - find the gaps. For instance, you might know who your main competitor is but not know how they have come up with a price for their product.</p>
<h2>Talk to your staff</h2>
<p>Your customer-facing staff can be a tremendous source of information. Good salespeople, in particular, <a title="Listen and learn - increasing sales through customer feedback" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/listen-and-learn-increasing-sales-through-customer-feedback">know their customers</a> and understand the market well. They are often best-placed to highlight trends and spot threats and opportunities. But salespeople are doers not writers, so they tend to keep this information in their head. It's worth sitting down with your staff to get them to tell you what they know.</p>
<h2>Talk to your customers</h2>
<p>To understand your target market, you need to know who is buying, what they are buying, when and why. Your own records should give you most of the answers. What you may not know is what prompts your customers to buy. Customers are usually happy to provide <a title="Ask your customer what they think" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think">feedback</a>, not least because they want a competitive marketplace and to get the best price and service. As a small firm, you have an advantage in that you are closer to your customers than your bigger rivals, so you can take advantage of your relationship with your customers to get valuable feedback.</p>
<h2>Test your ideas</h2>
<p>Companies often look at market research when they want to launch a new product or service. Before you launch, do some internal market research - try doing some brainstorming with your staff. Next, test the idea among key customers, ideally face-to-face. If you sell via a distributor or retailer, do these preliminary end-user tests before you take your new product to the distributor to prove there's demand.</p>
<h2>Try some mystery shopping</h2>
<p>Ask someone outside of your firm to do some mystery shopping. This means they visit or call your company and pose as a customer. That way you can get a true picture of the quality of service you provide. At the same time, you can use the same person to check out rival establishments. If you run a local café, for example, use a mystery shopper to get the inside track on how your nearest competitor is doing. It is worth bearing in mind that a one-off visit will only tell you about that establishment on that day. You may need to make several visits to form an accurate judgement of how your rivals are doing.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Ask your customer what they think" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think">Ask your customers what they think</a></li>
<li><a title="Listen and learn - increasing sales through customer feedback" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/listen-and-learn-increasing-sales-through-customer-feedback">Listen and learn - increasing sales through customer feedback</a></li>
<li><a title="How to conduct DIY surveys online" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-conduct-diy-surveys-online">How to conduct DIY surveys online</a></li>
</ul>
ArticleQuestionnaires, surveys and focus groupsPlanningThu, 02 Apr 2009 15:14:10 +0000Chris Pearce729 at http://www.marketingdonut.co.ukHow can market research help me?http://www.marketingdonut.co.uk/marketing/market-research/how-can-market-research-help-me-
<p><strong><a title="Julia Whitehead" href="/experts/julia-whitehead" target="_self">Julia Whitehead</a>, director of <a title="Ask Joe Public" href="http://www.askjoepublic.co.uk/" target="_blank" rel="nofollow">Ask Joe Public</a>, explains how market research can help your business grow</strong></p>
<p><strong>Why do I need to do market research?<br /></strong>Market research can enable you to identify your target consumer, find out what they think about your ideas, products or brand and gather insights to help you target the right market.</p>
<p><strong>When should I do market research?</strong><br />Market research should be part of your business strategy. It can be undertaken at numerous stages from pre-launch onwards. It is worth bearing in mind that consumers' motivation and behaviour change over time so you should really consider reviewing your research on a regular basis.</p>
<p><strong>How will it help me in my business?</strong><br />That depends on what business you are in and what you need to find out. If you are launching a new product it can help identify whether it is appealing, who your target audience is, how big the market is, who the competition is and how you are positioned in the marketplace. Market research can enable you to test everything from ideas and perceptions to packaging.</p>
<p><strong>Does market research need to be expensive?<br /></strong>If you have never undertaken market research before, it may sound expensive. However, when you put it in perspective and relate it to the costs of launching a product or service then the costs are relatively low. Market research can help you to understand whether you have a viable idea in the first place, and can help you improve your sales in the long term.</p>
<p><strong>Which are the most cost-effective methods?<br /></strong>Desk research is cost effective as it relies on existing market data, much of it available online. Desk research can provide information about market size, value and trends. The disadvantage is that it is not specific to your product.</p>
<p>Your own sales data also represents valuable information that can help you understand sales, geographic and demographic trends.</p>
<p>If you are commissioning research, there are some relatively cheap methods. However, the choice of methodology should be driven by your brief not just your budget. Hall Tests are a way of getting the opinions of a cross section of people and are useful if they need to see or sample products. Omnibus Surveys enable you ask a few questions on a large general survey that is shared with other businesses.</p>
<p>Another way of gathering information is observational research. For example, you could watch how long people interact with a product before buying it, whether they are alone or with someone else, what else they buy and whether they are looking for assistance.</p>
<p>If you want to understand consumers' perceptions of your products, or behaviour in more detail, the most cost-effective method is probably focus groups. The internet can also be a cost-effective way to reach large samples of people.</p>
<p><strong>Can I do it myself or do I need an expert?</strong><br />It is possible to do basic background research yourself, but when it comes to gathering feedback directly from people we recommend that you employ professional market researchers.<strong></strong></p>
<p>Professionals know how to select the right audience. In addition, there is a skill to asking the right sort of questions and providing feedback that is relevant, coherent and concise.</p>
<p>Experts are neutral third parties so they can provide you with a true gauge of what people really think and feel about your ideas, products or brands. I've had clients that had tried to do their own research and the findings had raised some alarm bells. When I conducted the research properly, the results turned out to be very different.</p>
<p><strong>How do I choose a professional?<br /></strong>There are several types of market research providers. Full service agencies provide professional staff to undertake your project from beginning to end. Independent consultants may be small agencies or freelancers. They can be quite flexible and could even work on a daily basis when you need a consultant to help you out. Freelancers often can be more cost-effective than larger agencies. Most researchers will have areas of research and markets that they specialise in and it is important to match this to your own business requirements.</p>
<p><strong>Where do I find professional market researchers?<br /></strong>There are various professional bodies that can provide you with contact details of consultants and agencies that meet their codes of conduct as well as offering general advice about market research. These include:</p>
<ul>
<li><a title="The Market Research Society (MRS)" href="http://www.mrs.org.uk/" target="_blank" rel="nofollow">The Market Research Society (MRS)</a></li>
<li><a title="Association for Qualitative Research (AQR)" href="http://www.aqr.org.uk/" target="_blank" rel="nofollow">Association for Qualitative Research (AQR)</a></li>
<li><a title="Independent Consultants Group (ICG)" href="http://theicg.co.uk/" target="_blank" rel="nofollow">Independent Consultants Group (ICG)</a></li>
</ul>
<p><strong>Commissioning qualitative research:</strong></p>
<p>The ICG has produced a guide entitled&nbsp;<a title="Independent Consultants Group" href="http://theicg.co.uk/resource/4000103/commissioning-qualitative-research" target="_blank" rel="nofollow"><strong>Commissioning Qualitative Research</strong></a>, which offers advice to businesses including information on how to get the best out of the research and how to avoid common problems.</p>
<p>Written by <a title="Julia Whitehead" href="/experts/julia-whitehead" target="_self">Julia Whitehead</a> of <a title="Ask Joe Public" href="http://www.askjoepublic.co.uk/" target="_blank" rel="nofollow">Ask Joe Public</a>.</p>
ArticleMarket researchPlanningThu, 02 Apr 2009 14:41:49 +0000Chris Pearce717 at http://www.marketingdonut.co.ukWhat is quantitative research?http://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/what-is-quantitative-research-
<p><img style="float: right; margin: 10px;" title="Quantitative research" src="/sites/default/files/Bluecharts_249x167.jpg" alt="What is quantitative research?{{}}" width="249" height="167" /><strong>Quantitative research — including surveys and customer questionnaires — can help small firms to improve their products and services by enabling them to make informed decisions</strong></p>
<p>Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics to guide you. To get reliable statistical results, it’s important to survey people in fairly large numbers and to make sure they are a representative sample of your target market.</p>
<h2>Reasons to do market research</h2>
<p>Research is an important first step before you undertake many key marketing tasks including:&nbsp;<a href="/marketing/marketing-strategy/your-marketing-plan">preparing a marketing plan</a>, doing&nbsp;<a href="/marketing/marketing-strategy/swot-analysis/how-to-do-a-swot-analysis">SWOT analysis</a>,&nbsp;<a href="/marketing/marketing-strategy/product-development/new-product-development-11-faqs">product development</a>,&nbsp;<a href="/marketing/marketing-strategy/branding/i-m-a-small-business-why-do-i-need-a-brand-">branding</a>&nbsp;and&nbsp;<a href="/marketing/marketing-strategy/pricing">pricing</a>.</p>
<p>And market research should also inform your&nbsp;<a href="/marketing/internet-marketing">internet marketing strategy</a>&nbsp;— everything from the design of&nbsp;<a href="/marketing/internet-marketing/your-website">your website</a>&nbsp;to&nbsp;<a href="/marketing/internet-marketing/email-marketing">email newsletters</a>,&nbsp;<a href="/marketing/internet-marketing/seo/q-a-search-engine-optimisation">SEO</a>&nbsp;and&nbsp;<a href="/marketing/internet-marketing/social-media-and-online-networking">social networking</a>&nbsp;on sites such as&nbsp;<a href="/marketing/internet-marketing/social-media-and-online-networking/get-started-with-twitter">Twitter</a>&nbsp;and&nbsp;<a href="/marketing/internet-marketing/social-media-and-online-networking/get-started-with-facebook">Facebook</a>.</p>
<p>If you are unsure about whether you need to do quantitative research, you can read our guide to the <a title="Quantitative research" href="/marketing/market-research/top-20-questions-that-research-could-help-you-answer">top 20 questions that research could help you answer</a>.</p>
<p><a title="Quantitative methods" href="/marketing/market-research/qualitative-or-quantitative-which-method-is-for-you-">Quantitative market research</a> typically includes customer surveys and questionnaires. These can be conducted face-to-face with a clipboard and pen, over the telephone, via post or email, online or via your website. Survey questions have to be carefully considered so that the results will provide meaningful data. So don’t just ask if people know about your business, ask how often they visit, what products they buy and where else they go to buy the same products and why.</p>
<h2>Quantitative market research: asking the right questions</h2>
<p>Answers on a structured <a title="Questionnaires market research" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/how-to-create-effective-customer-questionnaires">questionnaire</a> are usually closed — in other words they require respondents to choose from a specific selection of answers and do not allow for the respondent to qualify their answer or elaborate. So a garden centre owner might ask, “How often do you buy plants and gardening supplies?” and respondents would have to choose between five options: never, once a year, 2-3 times a year, once a month, every week. A semi-structured questionnaire will ask one or two questions where the answers are open-ended.</p>
<p>By asking lots of people the same questions, it’s possible to build up a clearer picture of how customers behave.</p>
<p>You can also use quantitative research to compare sub-groups of customers. For instance, if you run a local café or deli, you will probably find that you are catering to a range of different customers, all with different needs — from mums meeting for coffee to local workers popping in for a sandwich to ethical shoppers that buy your Fair Trade products to keen cooks that are looking for specialist ingredients. It’s worth using surveys to find out about your customers so that you can analyse the results of each group. Make sure you speak to a good number of each type of customer so you get the clearest view.</p>
<p>Moreover, if you repeat your surveys regularly, you can monitor how opinions are changing and how your new initiatives are being received. Try to keep some of the questions the same so you can make true comparisons with previous research.</p>
<h2>Quantitative market research: surveying your customers</h2>
<p>Choosing how to conduct your survey is another important issue. Face-to-face works well if you need to explain anything or show a product to the respondent. Telephone surveying can also be very effective but it can be hard to catch people when they have time to talk. If you are sending out surveys by post and email, you may find you have to offer an incentive in order to persuade people to take the time to fill out the questionnaire.</p>
<p>A good time to ask a customer to fill in a questionnaire is when you have finished a job for them. A <a title="Customer satisfaction survey" href="/marketing/market-research/market-analysis/measuring-customer-satisfaction">customer satisfaction survey</a> gives customers the chance to point out any quibbles they might have and also to praise good work. It can be a good way to gather positive testimonials that you can use in your marketing. At the same time, take the chance to gather contact details and add the customer to your mailing list so you can get in touch with them in the future (<a title="Data protection" href="http://www.lawdonut.co.uk/law/data-protection-and-it/data-protection/your-firm-and-the-data-protection-act" target="_blank" rel="nofollow">make sure you get their permission</a>).</p>
<p>If you want to survey a large number of new prospects and don’t know how to reach them, you can contribute questions to an <a title="Internet research" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/doing-research-on-the-internet">online Omnibus survey</a>. These are general surveys that are completed by large groups of pre-selected consumers online. By adding two or three questions of your own to the survey you can tap into that consumer panel and get some useful feedback. This kind of exercise is ideal if you are thinking of going into a new consumer market.</p>
<h2>What can quantitative research tell you?</h2>
<ul>
<li>Is there a market for your products and services?</li>
<li>What awareness is there of your product or service?</li>
<li>How many people are interested in buying your product or service?</li>
<li>What type of people are your best customers?</li>
<li>What are their buying habits?</li>
<li>How are the needs of your target market changing?</li>
</ul>
<h2>Analysing the results of your quantitative research</h2>
<p>Collecting data is just one part of the research task. You have to collate it and analyse it as well. With a complex survey, this can be a specialist task in order to extrapolate all the findings and drill down into the data to see how different groups have responded. However, a simple survey can be very effective and highly revealing and small firms can always benefit from asking their customers what they think.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title=" Do-it-yourself market research" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/do-it-yourself-market-research">Do-it-yourself market research</a></li>
<li><a title="Getting the measure of your marketing" href="/marketing/market-research/benchmarking/getting-the-measure-of-your-marketing">Getting the measure of your marketing</a></li>
<li><a title="Six ways to test your products on a shoestring budget " href="/marketing/market-research/new-product-research/six-ways-to-test-your-products-on-a-shoestring-budget">Six ways to test your products on a shoestring budget</a>&nbsp; </li>
</ul>
ArticleQuestionnaires, surveys and focus groupsMarket researchPlanningThu, 02 Apr 2009 14:31:59 +0000Chris Pearce710 at http://www.marketingdonut.co.ukWhat is qualitative research?http://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/what-is-qualitative-research-
<p><strong><img style="float: right; margin: 10px;" title="What is qualitative research? - People talking" src="/sites/default/files/Talkinggroup_249.png" alt="What is qualitative research?{{}}" width="249" height="167" />If you want to get inside your customers’ minds you need to do qualitative research. Face-to-face interviews and focus groups can provide valuable insights into your products, your market and your customers</strong></p>
<p>Qualitative research is about finding out not just what people think but why they think it. It’s about getting people to talk about their opinions so you can understand their motivations and feelings.</p>
<p>Face-to-face interviews and group discussions are the best way to get this kind of in-depth feedback. Qualitative research can be valuable when you are developing new products or coming up with new marketing initiatives and you want to test reactions and refine your approach.</p>
<h2>Reasons to do market research</h2>
<p>Research is an important first step before you undertake many key marketing tasks including: <a href="/marketing/marketing-strategy/your-marketing-plan">preparing a marketing plan</a>, doing <a href="/marketing/marketing-strategy/swot-analysis/how-to-do-a-swot-analysis">SWOT analysis</a>, <a href="/marketing/marketing-strategy/product-development/new-product-development-11-faqs">product development</a>, <a href="/marketing/marketing-strategy/branding/i-m-a-small-business-why-do-i-need-a-brand-">branding</a> and <a href="/marketing/marketing-strategy/pricing">pricing</a>.</p>
<p>And market research should also inform your <a href="/marketing/internet-marketing">internet marketing strategy</a> — everything from the design of <a href="/marketing/internet-marketing/your-website">your website</a> to <a href="/marketing/internet-marketing/email-marketing">email newsletters</a>, <a href="/marketing/internet-marketing/seo/q-a-search-engine-optimisation">SEO</a> and <a href="/marketing/internet-marketing/social-media-and-online-networking">social networking</a> on sites such as <a href="/marketing/internet-marketing/social-media-and-online-networking/get-started-with-twitter">Twitter</a> and <a href="/marketing/internet-marketing/social-media-and-online-networking/get-started-with-facebook">Facebook</a>.</p>
<p>Market research can also help you develop your products and services and make sure they meet the needs of your target audience. For instance, if you run a restaurant and you want to introduce a new lunch menu, you could invite a small group of local people to come and taste the food and give you feedback on your service and proposed pricing. This kind of exercise might only take a few hours and would not cost you much but it could provide you with important feedback and increase your chances of success.</p>
<p>Before you go into production with a new line, it’s vital to get your product into the hands of some members of your target market. Is it easy to use, does it do what it is supposed to, is the design appealing? Does it look as if it will compare to existing competitive products in-store? Is the packaging working? Is the price right? This type of customer research almost always throws up one or two important issues that can then be ironed out before you launch your product.</p>
<h2>Running a research group</h2>
<p>Getting clear results from qualitative research can be difficult, however. Some people may be positive just to be polite, while others may be overbearing and dominate the discussion. You are also working with small samples of your target market. Typical groups could be four to eight people. Or you could conduct one-on-one interviews. By contrast, a survey (<a title="Quantitative research" href="/marketing/market-research/what-is-quantitative-research-">quantitative research</a>) might be sent out to a large number of customers.</p>
<p>Choosing the right person to interview people or to moderate a group discussion is vital. Professional market researchers are the ideal choice and it’s certainly important that business owner/managers don’t run the sessions themselves. So it’s vital to find an independent person to do the job — that way, they’ll remain unbiased and the people they are interviewing will feel they can speak honestly.</p>
<p>A good interviewer or moderator will run the session in an unstructured, free-flowing way. Answers should be probed in depth and the proceedings should be recorded for accuracy when analysing the interviews later. Body language and non-verbal responses are worth analysing and video is especially useful to remind the moderator how respondents looked as well as what they said in the interview.</p>
<h2>What can qualitative research tell you?</h2>
<ul>
<li>What customers or prospects think and feel about your product or service</li>
<li>How customers choose between different products or suppliers; what motivates them</li>
<li>How branding, design and packaging influence customers and in what way</li>
<li>What sort of marketing messages have the most impact and what turns customers off completely</li>
<li>How price affects their decision-making</li>
<li>Whether there is demand for a new product or service</li>
</ul>
<p>Qualitative research is about getting people to expand on their answers so that you can get more insight into their attitudes and behaviour. It’s all about getting underneath people’s responses to find out what is driving their decisions.</p>
<p><strong>More guidance on qualitative research:</strong></p>
<p>The ICG (Independent Consultants Group) has produced a guide entitled <a title="Commissioning Qualitative Research" href="http://theicg.co.uk/resource/4000103/commissioning-qualitative-research" target="_blank" rel="nofollow"><strong>Commissioning Qualitative Research</strong></a>, which offers advice to businesses including information on how to get the best out of the research and how to avoid common problems.</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Qualitative or Quantitative - which method is for you?" href="/marketing/market-research/qualitative-or-quantitative-which-method-is-for-you-">Qualitative or quantitative — which method is for you?</a></li>
<li><a title="Ask your customer what they think" href="/marketing/market-research/questionnaires-surveys-and-focus-groups/ask-your-customer-what-they-think">Ask your customer what they think</a>&nbsp;</li>
<li><a title="What can businesses learn from price comparison websites?" href="/marketing/market-research/market-analysis/what-can-businesses-learn-from-price-comparison-sites-">What can businesses learn from price comparison websites?</a></li>
</ul>
ArticleQuestionnaires, surveys and focus groupsMarket researchPlanningThu, 02 Apr 2009 14:17:23 +0000Chris Pearce702 at http://www.marketingdonut.co.ukResearch your markethttp://www.marketingdonut.co.uk/marketing/market-research/research-your-market
<div class="htdi">
<div class="standfirst">
<p>Before setting up a business, you need to research your market thoroughly. Although it takes time and effort it’s worthwhile, because having a deep knowledge of your competitors and potential customers can help your business to hit the ground running and be more successful.</p>
<p>Make sure the scope of your market research is sufficient and don’t rush any stage because both can limit your success. Researching your market need not be a costly exercise, because there are many sources of inexpensive or even free information. And there is also much you can do yourself.</p>
</div>
<div class="section" id="section-1">
<h2><span class="number">1</span> Decide what you need to know</h2>
<div class="section" id="section-1.1">
<h3><span class="number">1.1</span> Find out who your potential customers are.</h3>
<p>If you’ll be selling to people, you need to know their sex, age, marital status, occupation, income, aspirations, wants, needs, lifestyle habits, etc.</p>
<p>n If you’ll be selling to businesses, you need to know their size, sector, buying patterns and service requirements. </p>
<p>You also need to know what links all of your customers and who makes or influences the buying decision.</p>
</div>
<div class="section" id="section-1.2">
<h3><span class="number">1.2</span> Understand what they buy and in what quantities.</h3>
<p>For example, a printing firm should understand if its customers are likely to want a thousand postcards or a million brochures. A successful sandwich shop will predict its top-selling sandwiches and how many of each they expect to sell each day.</p>
</div>
<div class="section" id="section-1.3">
<h3><span class="number">1.3</span> Find out when they buy.</h3>
<p>Toy sellers buy more products later in the year, so they’re fully stocked for the pre-Christmas trading period. A minicab firm will usually expect more business on Saturday evening than Monday afternoon.</p>
</div>
<div class="section" id="section-1.4">
<h3><span class="number">1.4</span> Understand where and how they will buy.</h3>
<p>A bookseller will know that, while many customers like visiting a shop, many now prefer to buy online. Do a hairdresser’s customers want to visit the salon, or have their hair done at home?</p>
</div>
<div class="section" id="section-1.5">
<h3><span class="number">1.5</span> Define why they will buy from you.</h3>
<p>Every new business has to know why customers will buy from them and not a competitor. This will be key to marketing your business and is known as your ‘unique selling proposition’ or USP.</p>
</div>
</div>
<div class="section" id="section-2">
<h2><span class="number">2</span> Choose your research methods</h2>
<div class="section" id="section-2.1">
<h3><span class="number">2.1</span> Use ‘quantitative’ research to find hard facts about potential customers.</h3>
<p>This research will tell you how many people or businesses you can target and how they spend their money. You might be able to buy this from an existing data providet, get it done especially for you or perhaps do it yourself. There are also several sources of free information.</p>
</div>
<div class="section" id="section-2.2">
<h3><span class="number">2.2</span> Use ‘qualitative’ research to assess potential customers’ attitudes.</h3>
<p>This focuses on how potential customers think and behave. This can be bought, commissioned from various of sources or you may be able to do it yourself.</p>
</div>
<div class="section" id="section-2.3">
<h3><span class="number">2.3</span> Remember — you'll probably need both types of research.</h3>
<p>List all the elements you need to know about your potential customers — who, what, when, where, why and how — and whether you need to find out facts and figures (quantitative) or about their attitudes and actions (qualitative) to give you the answers you need.</p>
</div>
<div class="section" id="section-2.4">
<h3><span class="number">2.4</span> Identify the most reliable and cost-effective ways to obtain the information.</h3>
<p>You may be able to use free resources (see <a href="#section-3">section 3</a>), buy research (see <a href="#section-4">section 4</a>), do it yourself (see <a href="#section-5">section 5</a>) or pay a specialist company to do it for you (see <a href="#section-6">section 6</a>). </p>
</div>
</div>
<div class="section" id="section-3">
<h2><span class="number">3</span> Use free sources of information</h2>
<div class="section" id="section-3.1">
<h3><span class="number">3.1</span> Check with relevant trade associations.</h3>
<p>Trade associations often collect data from their members, which could give you a good insight into your industry. The <a href="http://www.taforum.org/members" rel="nofollow">Trade Association Forum</a> has a searchable list.</p>
</div>
<div class="section" id="section-3.2">
<h3><span class="number">3.2</span> Use libraries and universities.</h3>
<p>Some libraries and universities store statistics. University departments or experts working in your field could have data they can provide free of charge (or at a low cost).</p>
</div>
<div class="section" id="section-3.3">
<h3><span class="number">3.3</span> Find official figures.</h3>
<p>Government databases are a useful source of statistics. The government-run <a href="http://www.statistics.gov.uk/default.asp" rel="nofollow">Office for National Statistics </a>provides free data on various issues.</p>
</div>
<div class="section" id="section-3.4">
<h3><span class="number">3.4</span> Search online — carefully. </h3>
<p>You can find a wealth of freely available information online, but if you do, make sure the data is recent and from a reliable source.</p>
</div>
<div class="section" id="section-3.5">
<h3><span class="number">3.5</span> Use trade publications and websites.</h3>
<p>Many specialist trade publications offer free subscriptions or unrestricted access to their websites.</p>
</div>
</div>
<div class="section" id="section-4">
<h2><span class="number">4</span> Buy existing research</h2>
<div class="section" id="section-4.1">
<h3><span class="number">4.1</span> Identify specialist companies that may have carried out research on your sector or potential customers.</h3>
<p>Find market research providers using the <a href="http://www.mrs.org.uk" rel="nofollow">Market Research Society</a>'s directory.</p>
<p>You can use specialist websites that offer searchable databases of existing reports. </p>
</div>
<div class="section" id="section-4.2">
<h3><span class="number">4.2</span> Check with business support associations.</h3>
<p>Your local <a href="http://www.businesslink.gov.uk" rel="nofollow">business support organisation</a> may be able to provide advice on specialist research sources.</p>
</div>
</div>
<div class="section" id="section-5">
<h2><span class="number">5</span> Carry out your own research</h2>
<div class="section" id="section-5.1">
<h3><span class="number">5.1</span> Remember that if you are carrying out your own research, it’s likely to be qualitative.</h3>
<p>You won’t have the time or resources to definitively uncover the potential size of your market with authority and certainty.</p>
<p>For sources of quantitative research, see <a href="#section-3">section 3</a> and <a href="#section-4">section 4</a>.</p>
<ul>
<li>For example, if you want to know how many men aged 25 to 40 live in your area, you’ll need to find this information from your council or central government — you won’t be able to count them yourself.</li>
</ul>
</div>
<div class="section" id="section-5.2">
<h3><span class="number">5.2</span> Be clear what you want to find out before you start.</h3>
<p>Sometimes you’ll be looking to see if there is a market for your product or service, sometimes you’ll be trying to find out what price you’ll be able to charge or what would make a customer buy from you and not a competitor. Have a definite idea (or a number of ideas) about what you want your research to prove or test.</p>
</div>
<div class="section" id="section-5.3">
<h3><span class="number">5.3</span> Get potential customers to test your product or service.</h3>
<p>n Find a sample of your target market; get them to try your product or service and give their opinion.</p>
<p>To find out if people would use your service, you could contact potential customers and arrange a morning event so they can drop in for a coffee and a demonstration. Otherwise, offer to visit them.</p>
<p>Approach potential customers about test marketing your product. They may agree to use or sell a prototype of the product.</p>
</div>
<div class="section" id="section-5.4">
<h3><span class="number">5.4</span> Consider how you want to use the answer to a question when forming it.</h3>
<p>For example, if you are thinking of opening a high street flower shop, stopping people and asking them ‘Would you like to see a flower shop here?’ may provide you with a high positive response rate. But asking ‘If there were a flower shop here, how often would you use it?’ will provide more valuable results.</p>
</div>
<div class="section" id="section-5.5">
<h3><span class="number">5.5</span> Decide whether to use open or closed questions.</h3>
<p>Asking a closed question will gain a limited response. ‘Did you like product X?’ is likely to be answered with a simple ‘yes’ or ‘no’. </p>
<p>Asking an open question is likely to get a more detailed response. ‘What do you think can be improved?’ will be interpreted as a request for more than a one-word answer. </p>
<ul>
<li>While such responses are easier to collate, they are not as useful in determining why someone does or does not like your product or service.</li>
<li>Open questions allow you to gain more useful information. Finding out if they found the product or service useful is beneficial — but it’s more valuable to understand why.</li>
</ul>
</div>
</div>
<div class="section" id="section-6">
<h2><span class="number">6</span> Use professional or external help </h2>
<div class="section" id="section-6.1">
<h3><span class="number">6.1</span> Consider using a specialist, especially for surveys.</h3>
<p>Specialists, such as market research companies or marketing consultants, have the time and the expertise to do a thorough job. </p>
<p>Customers sometimes find it difficult to voice complaints to a supplier and some might also suspect that you’re trying to sell them something.</p>
<p>You might also find it difficult to be impartial.</p>
</div>
<div class="section" id="section-6.2">
<h3><span class="number">6.2</span> If your budget is tight, consider using an individual to do the work for you.</h3>
<p>You might ask someone suitable to carry out a telephone survey, for example. This approach will only be successful if the survey questionnaire is simple and well considered.</p>
<p>Provide a briefing and make sure the person fits the image you want to convey to potential customers.</p>
<p>Remember that street interviewers need local authority licences and identity cards.</p>
</div>
<div class="section" id="section-6.3">
<h3><span class="number">6.3</span> Check with market research industry associations.</h3>
<p>Trade associations, such as the Chartered Institute of Marketing and the Market Research Society, can provide advice on how to choose the right professionals for your purposes and budget.</p>
</div>
</div>
<div class="section" id="section-7">
<h2><span class="number">7</span> Analyse the competition and the market</h2>
<div class="section" id="section-7.1">
<h3><span class="number">7.1</span> Make sure you understand your competitors and what they sell.</h3>
<p>Try their products or services. It’s the easiest way to understand the market and what you’re up against when you become part of it. Carrying out a detailed analysis of their strengths and weaknesses can tell you what you need to do to compete successfully.</p>
<p>Look at the potential your competitors have to improve their service or upgrade their products. Work out how you can stay one step ahead.</p>
</div>
<div class="section" id="section-7.2">
<h3><span class="number">7.2</span> Consider if demand for the product or service will change over time.</h3>
<p>Make sure you can provide customers with a reason to keep coming back. This could be because your product has been updated, the old one has run out, worn out or because it’s so good they want more.</p>
<p>Find out if the market is affected by external factors, such as the economy or legislation. Are there any protective measures you could put in place? </p>
<p>Anticipate potential problems. You might be able to develop your product for a wider selection of markets to increase its chances of survival.</p>
</div>
</div>
<div class="section" id="section-8">
<h2><span class="number">8</span> Use your research fairly and accurately</h2>
<div class="section" id="section-8.1">
<h3><span class="number">8.1</span> Keep your distance.</h3>
<p>Do not base market research on the opinions of your friends and family. You risk hearing what they think you want to hear — rather than their honest opinions.</p>
<p>Record comments given, otherwise you might forget feedback that could enable you to improve your products or service. </p>
<ul>
<li>If possible, give the analysis to someone you tust who isn’t connected to your business. </li>
</ul>
</div>
<div class="section" id="section-8.2">
<h3><span class="number">8.2</span> Don’t take negative comments personally.</h3>
<p>You can often learn more from criticism — and improve your business because of it.</p>
</div>
<div class="section" id="section-8.3">
<h3><span class="number">8.3</span> Don’t allocate a fixed timeframe for your research.</h3>
<p>It will only be finished when you have a clear understanding of your market and where you intend to position your business within it.</p>
</div>
<div class="section" id="section-8.4">
<h3><span class="number">8.4</span> Use research regularly.</h3>
<p>Remember that once your business is up and running, continuing your research regularly will allow you to remain aware of your customers’ needs and stay one step ahead of the competition.</p>
<p>Keep looking out for new opportunities, whether this means improving your product or targeting new markets.</p>
</div>
</div>
<div class="boxout">
<h2>Signpost</h2>
<ul>
<li>To find a trade association relevant to your business visit the <a href="http://www.taforum.org/members" rel="nofollow">Trade Association Forum’s website </a></li>
<li>Official data is available from the <a href="http://www.statistics.gov.uk/default" rel="nofollow">Office for National Statistics</a></li>
<li>Find market research providers via the <a href="http://www.mrs.org.uk" rel="nofollow">Market Research Society's</a> directory</li>
<li>Leading publishers of market research on specific industries include:</li>
<li>
<a href="http://www.reports.mintel.com" rel="nofollow">Mintel</a>
</li>
<li>
<a href="http://www.keynote.co.uk" rel="nofollow">Key Note</a>
</li>
<li>
<a href="http://www.datamonitor.co.uk" rel="nofollow">Datamonitor</a>
</li>
</ul>
</div>
</div>
BriefingMarket researchPlanningThu, 02 Apr 2009 14:04:45 +0000Chris Pearce693 at http://www.marketingdonut.co.ukExploiting gaps in your markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/exporting/exploiting-gaps-in-your-market
<p><strong><img style="float: right;" title="Exploiting gaps in the market" src="/sites/default/files/Jigsawredpiece_249.png" alt="Exploiting gaps in the market - Red jigsaw piece{{}}" width="249" height="167" />Spotting a gap in the market is a key challenge for any business that wants to stay competitive. But proposing a new offer is one thing, taking it successfully to market presents another challenge. Simon Wicks looks at what happens next</strong></p>
<p>The history of commerce is littered with products and services that seemed like great ideas, but for which there was actually no sustainable market. For example, Clive Sinclair's C5 electric tricycle famously failed to take off because it created a safety problem rather than solving a transport one.</p>
<p>"I think all of us have launched some bad ideas," says John Fitzgerald, chief executive of <a title="BRAVE" href="http://www.brave.org.uk" target="_blank" rel="nofollow">BRAVE</a>, the business support agency. "It's very easy to rush on because it seems like a good idea. I've seen it in both delivering services and manufacturing products - for example, making something because you like making it, rather than asking your customers first."</p>
<h2>Research the market</h2>
<p><a title="Product development" href="/marketing/marketing-strategy/product-development">Launching a new product or service</a> without proper planning could seriously undermine your credibility. If you are seen as a business that plunges into new schemes without thinking them through, customers will doubt your professionalism and drift away.</p>
<p>"Every company wants to get to market quickly, but you must do your <a title="New product research" href="/marketing/market-research/new-product-research">market research</a> - even within your own organisation," Fitzgerald advises. "Don't get into a position where you're launching a product and your own people don't know about it, then say 'That's never going to work. You should have asked me.'</p>
<p>"Try your idea within the company first, then talk to customers and trade bodies and work it up to get the best offer you can," he continues. "Ask 'Who is this product directed at?'. You need to understand what your potential customers want."</p>
<h2>Run a pilot</h2>
<p>"Don't oversell and under-deliver," warns Fitzgerald. "If you think you've got the offer right, think through what it means for your company. Can you be sure you can meet demand? Have you got enough warehouse and distribution capacity?"</p>
<p>Running a low-key pilot will help you test demand and iron out problems. "Pick two or three customers who you know will give you very solid feedback and ask them to try it out," Fitzgerald suggests.</p>
<p>"If there are things wrong with it, you'll find out early and you haven't got egg on your face," he stresses. "Listen to their comments, make changes and push it a bit more, then a bit more."</p>
<p>"A lot of our buying decisions are based on the understanding that a product or service has been properly tested or is selling well in another market. If you can tell a potential customer, 'I can put you in touch with these people who are delighted with it', it puts you in a stronger position."</p>
<h2>Knowing when a product is not viable</h2>
<p>Knowing when to let go of something that is not working is as important as knowing when to push something that is. "It's very difficult for most entrepreneurs to give up, but you have to have that mindset," insists Mike Southon, author of <em>The Beermat Entrepreneur</em>. "If it's hard work selling something there's something wrong - whether it's the wrong market or the wrong product or service. You should never struggle with getting people to understand your offer."</p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Product development" href="/marketing/marketing-strategy/product-development">Product development</a></li>
<li><a title="New product research" href="/marketing/market-research/new-product-research">New product research</a></li>
<li><a title="Six ways to test your products on a shoestring budget" href="/marketing/market-research/new-product-research/six-ways-to-test-your-products-on-a-shoestring-budget">Six ways to test your products on a shoestring budget</a></li>
</ul>
ArticleNew product researchYour marketing planSWOT analysisExportingMaximisingThu, 02 Apr 2009 13:04:36 +0000Kasia658 at http://www.marketingdonut.co.ukQualitative or quantitative — which method is for you?http://www.marketingdonut.co.uk/marketing/market-research/qualitative-or-quantitative-which-method-is-for-you-
<p><img style="margin-left: 10px; margin-right: 10px;" src="/sites/default/files/Barchartandbluepen_249x167.jpg" alt="Bar chart and blue pen" width="249" height="167" />Market research generally falls into two main methodological groups: qualitative and quantitative.</p>
<p><a title="Qualitative research" href="/marketing/market-research/what-is-qualitative-research-"><strong>Qualitative</strong> <strong>research</strong></a> is an in-depth exploration of what people think, feel or do and, crucially, why. If you want to know why your customers behave as they do and what barriers there may be to their changing that behaviour, you would use qualitative research to explore those issues. Qualitative research does not give statistically robust findings.</p>
<p><a title="Quantitative research" href="/marketing/market-research/what-is-quantitative-research-"><strong>Quantitative</strong> <strong>research</strong></a> provides a measure of how many people think, feel or behave in a certain way and uses statistical analysis to determine the results. If you want to know how many of your customers support a change in a product or service - and how strongly they support it — so that you can determine whether you have a business case for making that change, you would use quantitative research.</p>
<p>While these are often used as standalone methodologies they can also be valuably combined into <strong>mixed-methodology</strong> research. You may be considering a customer satisfaction survey for the first time. While you may have an idea of what is important to your customers, they may have a different view. An initial piece of qualitative research could identify their needs and priorities; a subsequent quantitative survey could measure how satisfied your customers are that you are meeting those needs.</p>
<h2>How does qualitative research work?</h2>
<p>Qualitative research follows a semi-structured discussion guide to ensure that all topics under consideration are covered and that the discussion stays relevant. However, the questioning is open and participants are encouraged to explore the reasons for their responses. The discussion process can reveal underlying views and motivations, behavioural triggers and barriers. It can explore reactions to messages, printed material, design features and new products, test understanding of terminology, help generate new concepts and much more.</p>
<p>The most commonly used qualitative approaches are focus groups and depth interviews.</p>
<p>Focus groups (also called group discussions) normally comprise five to eight participants brought together to discuss a number of topics, guided by a moderator. The dynamics of the interaction between participants is an important feature of a focus group.</p>
<p>Depth interviews are one-on-one interviews conducted by telephone or face-to-face. The more intimate environment allows participants to talk openly and is particularly appropriate where participants are competitors who would not agree to come together in a focus group.</p>
<p>Qualitative research is usually audio-recorded and transcribed. The transcriptions form the data which is then analysed by the moderator. Groups can also be video-recorded and can also be observed in real-time at venues specially designed for that purpose.</p>
<p>You can expect a report or a presentation of the findings supported by verbatim quotes from the participants.</p>
<h2>How does quantitative research work?</h2>
<p>Quantitative research uses a structured questionnaire with mostly closed questions, ie the respondents select their answers from given lists of possible responses. A range of question types may be used. For example, rating questions can measure strength of feeling such as importance or satisfaction, ranking questions can determine preferences, and so on.</p>
<p>Quantitative research may be paper-based, as in a postal survey, or computerised, as in a telephone or online survey. A computerised survey can also be conducted face-to-face using a laptop or on site (eg in-store, on street) using PDAs (hand-held computers).</p>
<p>Because of its statistical nature, sample size is important for quantitative research. Thirty is generally held to be the minimum number of responses for any area of interest although a larger sample size will produce more reliable data.</p>
<p>You can expect a report or a presentation of the findings supported by tables and graphs.</p>
<p>Written by <a title="Rob Sheldon" href="/experts/rob-sheldon" target="_self">Rob Sheldon</a> of <a title="Accent" href="http://www.accent-mr.com/" target="_blank" rel="nofollow">Accent</a>.</p>
ArticleMarket researchPlanningThu, 02 Apr 2009 13:02:37 +0000Chris Pearce656 at http://www.marketingdonut.co.ukTop 20 questions that research could help you answerhttp://www.marketingdonut.co.uk/marketing/market-research/questionnaires-surveys-and-focus-groups/top-20-questions-that-research-could-help-you-answer
<p><strong>Market research can give you insight into your market, your competitors, your products, your marketing and your customers. Here are 20 questions market research can help you answer:<br /></strong></p>
<p><img style="float: right; margin-left: 10px; margin-right: 10px;" title="20 questions market research could help you answer: blackboards with questions on" src="/sites/default/files/questions_249.jpg" alt="Questions written on blackboards{{}}" width="249" height="167" /></p>
<ol>
<li><strong>Who </strong>is currently buying your product or service? </li>
<li>What are these <strong>people's lives</strong> actually like? </li>
<li>Why are other people <strong>not </strong>buying it? </li>
<li><strong>Who </strong>would be interested in buying it in the future? </li>
<li><strong>How many</strong> people like this are there? </li>
<li>What general <strong>trends </strong>are affecting these people's lives at the moment?</li>
<li><strong>Where </strong>would people buy your product or service from? </li>
<li><strong>When, where and how</strong> would they use or consume it?</li>
<li><strong>Why </strong>would they buy it? What need are they wanting to satisfy? </li>
<li>Who is your real <strong>competition</strong>? </li>
<li>What <strong>image </strong>do people have of your brand vs your competitors'?</li>
<li>What would be the ideal&nbsp;<strong>image&nbsp;</strong>for your brand to have? </li>
<li>What do they think about the <strong>different aspects</strong> of your product or service (name, packaging, features, advertising, pricing...)?</li>
<li>What <strong>improvements </strong>could be made to your product or service to meet people's needs even better?</li>
<li>What is the <strong>single most important benefit</strong> your brand should be seen to be offering - and why would people believe this to be true? </li>
<li>How can you best <strong>communicate </strong>that benefit to the people you're interested in attracting?</li>
<li>What is the right <strong>price </strong>to charge?</li>
<li>What other <strong>new </strong>products or services could your brand offer people?</li>
<li>So what is your <strong>vision </strong>for your brand? </li>
<li>And what would be the best <strong>roadmap </strong>for getting there?</li>
</ol>
<p>Written by <a title="Richard Brown" href="/experts/richard-brown" target="_self">Richard Brown</a> of <a title="Closer To Brands" href="http://www.closertobrands.co.uk/" target="_blank" rel="nofollow">Closer To Brands</a>.</p>
ArticleQuestionnaires, surveys and focus groupsMarket researchPlanningThu, 02 Apr 2009 11:17:57 +0000Chris Pearce635 at http://www.marketingdonut.co.ukHow to carry out market researchhttp://www.marketingdonut.co.uk/marketing/market-research/how-to-carry-out-market-research
<div class="section">
<h2>Checklist</h2>
<ol>
<li><span class="number">1</span> Focus on <strong>research</strong> which will help you make better decisions.</li>
<li><span class="number">2</span> Work out what you <strong>need to know</strong> and whether you need an in-depth understanding or simple numerical results.</li>
<li><span class="number">3</span> Decide how <strong>quickly</strong> you need the information and how <strong>accurate</strong> it must be.</li>
<li><span class="number">4</span> Set up your research with a clear <strong>brief</strong>, including objectives, deadlines and any important background information.</li>
<li><span class="number">5</span> Decide whether you have the expertise to carry out larger research projects or need to use an external <strong>agency</strong>, or freelance researcher.</li>
<li><span class="number">6</span> Make full use of <strong>easily accessed information</strong> from internal records, employee feedback, publications and the Internet.</li>
<li><span class="number">7</span> <strong>Ask your customers</strong> who they see as your competition and why they use you.</li>
<li><span class="number">8</span> If necessary, invest in <strong>surveys</strong>, observation and experiments to back up decisions.</li>
<li><span class="number">9</span> <strong>Analyse</strong> research results carefully and objectively.</li>
<li><span class="number">10</span> Be prepared to carry out <strong>further research</strong> if the information you have is insufficient or out of date.</li>
<li><span class="number">11</span> <strong>Use</strong> your research to make decisions and plan strategy.</li>
<li><span class="number">12</span> Regularly <strong>update</strong> your understanding of customers and market conditions.</li>
</ol>
</div>
<div class="section">
<h2>Cardinal rules</h2>
<div class="section">
<h3>Do:</h3>
<ul>
<li><strong>plan</strong> your objectives and clarify what you need to know</li>
<li>choose the most cost-effective <strong>research methods</strong></li>
<li><strong>use</strong> your research to improve your competitiveness</li>
<li>keep <strong>up to date</strong></li>
</ul>
</div>
<div class="section">
<h3>Don't:</h3>
<ul>
<li>base important decisions on <strong>inadequate research</strong></li>
<li><strong>ignore research</strong> which contradicts your preconceptions</li>
<li>rely on <strong>old research</strong></li>
</ul>
</div>
</div>
ChecklistMarket researchPlanningThu, 02 Apr 2009 10:46:49 +0000Chris Pearce610 at http://www.marketingdonut.co.ukMarket research FAQshttp://www.marketingdonut.co.uk/marketing/market-research/market-research-faqs
<p class="atom-faq-title"><strong>Eight FAQs on market research.<a name="#top"></a></strong></p>
<ol>
<li><a href="#1"><strong>What are the key things I need to know?</strong></a></li>
<li><strong><a href="#2">How long will my marketing research take?</a></strong></li>
<li><strong><a href="#3">What research methods would be useful for me?</a></strong></li>
<li><strong><a href="#4">Should I do my own research or get expert help in?</a></strong></li>
<li><strong><a href="#5">How much will I have to spend?</a></strong></li>
<li><strong><a href="#6">How can I find an outside agency with the approach and skills I need?</a></strong></li>
<li><strong><a href="#7">How much can I trust the results as a basis for business decisions?</a></strong><strong></strong></li>
<li><strong><a href="#8">How do I know when to stop researching and go for it?</a></strong></li>
</ol>
<h2><a name="1"></a>1.&nbsp; What are the key things I need to know?</h2>
<p>Market research should be carried out when you start your business, before launching a new product or service and whenever any unforeseen threat or opportunity arises. The process of SWOT analysis (strengths, weaknesses, opportunities, threats) may be useful to help you focus your thinking. You need to know:</p>
<ol>
<li>Where are the <strong>market opportunities</strong> not filled by competitors?</li>
<li>What might the <strong>demand</strong> be, at what <a title="Pricing" href="/marketing/marketing-strategy/pricing"><strong>price</strong></a> level, and is it subject to seasonal or cyclical variations?</li>
<li>What <strong>benefits</strong> of your product or service need to be highlighted?</li>
<li>Who forms your <strong>core <a title="Your target market" href="/marketing/marketing-strategy/your-target-market">target audience</a></strong>? And what is the potential?</li>
<li>How can you <strong>reach and sell</strong> to these people or businesses most cost effectively (<a title="Sales" href="/marketing/sales">direct sales</a>, <a title="Advertising" href="/marketing/advertising">advertising</a>, <a title="Exhibitions and events" href="/marketing/exhibitions-and-events">trade shows</a>, via the <a title="Ecommerce" href="/marketing/internet-marketing/e-commerce">internet</a>)?</li>
<li>What are the <strong>problems</strong> in delivering your product (sourcing components, design, legislation)?</li>
<li>Can you make a profit, and what are the <strong>implications</strong> for your business plan?</li>
</ol>
<p>You need to know what your customers or potential customers do now, what they think and what they believe they want or need. But you cannot know until you have asked them - that is what <a title="Market research" href="/marketing/market-research">primary research</a> is all about. The information you are seeking will be about factors such as products or services, pricing, image and awareness, <a title="Customer care" href="/marketing/customer-care">customer care</a>, after-sales service and the competition in the market.</p>
<p>Two areas are vitally important.</p>
<ol>
<li>Are you offering precisely what your <a title="Your target market" href="/marketing/marketing-strategy/your-target-market">target customers</a> want?</li>
<li>Is your <a title="Pricing" href="/marketing/marketing-strategy/pricing">price</a> right? (For most small firms, this means "Am I charging enough?")</li>
</ol>
<p>You need up-to-date information about your market - size, trends and changes. The best sources are your trade association, the internet, the marketing advice sections in city central libraries and trade and business journals. This is known as secondary research.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="2"></a>2.&nbsp; How long will my marketing research take?</h2>
<p>The time needed for primary research, where respondents are asked a series of questions, depends on the scale of the project (the sample size) and the method employed (doing it yourself or using an agency). As a guide, your minimum sample size should be at least 10% of your customer base, or 50 customers.</p>
<p>Many small businesses can achieve useful results in a week or two. If using a market research company, you must allow longer.</p>
<p>Secondary research information is often available immediately, free or at low cost, from the marketing advice section of a central library or from your ltrade association or local business support organisation's information service.</p>
<p>Generally, the more statistically accurate (<a title="What is quantative research research?" href="/marketing/market-research/what-is-quantitative-research-">quantitative</a>) you want the research to be, the longer it will take to prepare and complete. While this type of research may be apt if a large investment decision is at stake, there are other decisions that benefit most from timeliness, rather than accuracy. There is almost always a role for 'quick and dirty' lighter touch research which provides more emotional (<a title="What is qualitative research?" href="/marketing/market-research/what-is-qualitative-research-">qualitative</a>) clues about the next action you should take.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="3"></a>3. What research methods would be useful for me?</h2>
<p>It is important not to consider research methods in the abstract. The various methods are like tools in a toolbox, each more suited to one task than another. They include desk research (much of which can be done, literally, from your desk, using the internet) and field research, which can include customer research (focus groups, street interviews and 'hall tests' of your products), product research and pricing studies.&nbsp;&nbsp;</p>
<p>The key to successful research is to first identify what it is that you need to know - what information will most helpfully move you forward. Then weigh up the prevailing circumstances - eg speed versus detail, or scientific accuracy versus more emotional feedback and so on. The parameters you establish here will help you choose the most suitable research method for your situation.</p>
<p>For secondary research information, approach the marketing advice section of the central library or your local business support service.</p>
<p>For primary research, where respondents need to be asked a series of questions, the choice is between face-to-face interviews, telephone contact or mail or email questionnaires.</p>
<p>Face-to-face: This is useful if you need to show something and get a reaction (eg samples, photographs, a prototype or alternative designs and colours). It is also appropriate if you are talking to people who are not already customers.</p>
<p>Telephone: Use the phone to interview established customers or if doing a business-to-business survey.</p>
<p>Mail or email: These should generally be avoided, as you will get very few replies. If there is no alternative, consider offering a worthwhile incentive.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="4"></a>4. Should I do my own research or get expert help in?</h2>
<p>There are pros and cons to both approaches, depending on the circumstances.</p>
<h3>DIY research</h3>
<p>For:&nbsp;</p>
<ul>
<li>DIY will give you a 'feel' for what people think.</li>
<li>You could save money by doing it yourself.</li>
</ul>
<p>Against:</p>
<ul>
<li>DIY research is time-consuming and could be a distraction.</li>
<li>You will be inexperienced - even the design of a simple questionnaire can be more complex than it looks.</li>
</ul>
<p>Tip: If you are asking questions try to obtain unbiased responses and avoid revealing your true connection with the subject business. "I have been tasked to carry out a survey looking at..."</p>
<h3>Using an expert&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<p>For:</p>
<ul>
<li>You should end up with a professional job.</li>
<li>The project can be completed quickly and thoroughly.</li>
<li>The task will not eat into your own time.</li>
<li>You will benefit from 'tricks of the trade'.</li>
</ul>
<p>Against:</p>
<ul>
<li>The cost - experts can be expensive.</li>
<li>The challenge of vetting and appointing the right support.</li>
</ul>
<p><a href="#top">Back to top</a></p>
<h2><a name="5"></a>5.&nbsp; How much will I have to spend?</h2>
<p>DIY research costs time, not money. If you use an outside consultancy, expect to pay between £250 and £600 per day, depending on the size and prestige of the firm. If you are happy to retain control of the project and its design, consider using a telemarketing operation to do the legwork and get the cost down to around £250-£350 per day.</p>
<p>Pennypinching could jeopardise the quality of the findings. If you end up with misleading answers, the whole exercise could prove very expensive indeed.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="6"></a>6.&nbsp; How can I find an outside agency with the approach and skills I need?</h2>
<p>Ask friends, trusted business contacts or your local business support agency or trade association if they can recommend research agencies or consultants, or search online. Take sensible precautions and ask the right questions to make sure you find the best candidate before you go ahead. Check the following:</p>
<ol>
<li>Is the firm big enough to do the work but small enough to charge realistically?</li>
<li>Does it have enough suitably qualified staff?</li>
<li>Are they in tune with your particular needs?</li>
<li>What is their reputation in your area of interest or industry?</li>
<li>Are they specialised in any specific type of market research?</li>
<li>What range of research techniques do they use?</li>
<li>Can they supply you with case studies or previous success stories?</li>
<li>How long have they been in business?</li>
<li>Will you feel comfortable working with them?</li>
<li>Have they made it clear what the charges will be?</li>
<li>Does their approach make sense to you?</li>
<li>Above all, do you feel that they value your business?</li>
</ol>
<p>Of all these questions, the last is probably the most important.</p>
<p>Professional researchers usually belong to <a title="The Market Research Society" href="http://www.mrs.org.uk/" target="_blank" rel="nofollow">The Market Research Society</a> (020 7490 4911). Before appointing an outsider, you will need to:</p>
<ol>
<li>Examine reports the person or agency has produced - if they are not confidential. </li>
<li>Draw up a brief describing exactly what you need to find out. The woollier the brief, the less value you are likely to get. </li>
<li>Find out what knowledge the researcher has of your sector.</li>
<li>Draw up a timescale, with meetings and review dates.</li>
<li>Decide whether you can work satisfactorily with the researcher or agency.</li>
<li>Ask the daily rate and set a budget limit beyond which you will not go.</li>
</ol>
<p><a href="#top">Back to top</a></p>
<h2><a name="7"></a>7.&nbsp; How much can I trust the results as a basis for business decisions?</h2>
<p>The more information you have, the more specific it is to your situation and the more up-to-date it is, the more reliable it is likely to be. It is important to understand, though, that regardless of how professionally it is conducted, market research can never entirely take the risk out of business decision making. Remember that you are ultimately in the driving seat of your own business and from time to time you will make unsecured decisions. Market research will almost certainly provide you with additional information and food for thought.</p>
<p>Taking any market-related business decisions without research evidence is pure gambling. Even so, nothing in this area is absolute, and you still have to use your judgement and common sense.</p>
<p>The real challenge is how you interpret the results - and the big danger is refusing to quite believe the findings. Many small business managers fall into this trap and end up skewing the interpretation of the results to suit their own prejudices. If in doubt, extend the survey, or run another with a slightly modified questionnaire.</p>
<p><a href="#top">Back to top</a></p>
<h2><a name="8"></a>8.&nbsp; How do I know when to stop researching and go for it?</h2>
<p>When you are reasonably certain you know what customers think and how they are likely to react, go ahead. As a final cross-check, ask yourself three questions.&nbsp;</p>
<p>Was your sample size adequate? The smaller the sample, the less reliable the conclusions will be. The smallest sample should be 10% of one year's customers - 20% would be better. In any case, you should have surveyed at least 50.</p>
<p>Are you sure your respondents were not led by the questions or the way they were asked? Check this by changing the wording and testing whether the revised questionnaire appears to produce different results. If it does, you must do the field work again, with different respondents.</p>
<p>Are you sure nothing has happened since the survey to radically alter the situation? If in doubt, re-test the survey questionnaire. If the results look like being substantially different, run the whole survey again.</p>
<p>There is much truth in the saying that 'over-analysis leads to paralysis'. Getting the timing of a new marketing strategy right can sometimes be more critical than being certain you are doing exactly the right thing. For example, a new line of Christmas goods must be in the shops in good time for the festive season. To delay while a detailed research programme was completed could mean missing the boat. Alternatively, a major investment in a new innovation would justify considerable pre-analysis.</p>
<p>Unfortunately, there is no neat rule to follow about when to stop the research and get on with the project. This is one of those areas where you must be prepared to back your own judgement and experience. Research is there to give you clues. Ultimately it is you who must make the decision to move forward.</p>
<p><a href="#top">Back to top</a></p>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a href="/marketing/market-research/i-m-a-small-business-why-do-i-need-market-research-">I'm a small business: why do I need market research?</a></li>
<li><a href="/marketing/market-research/i-m-a-small-business-how-can-market-research-help-me-">I'm a small business: how can market research help me?</a></li>
<li><a href="/marketing/market-research/top-20-questions-that-research-could-help-you-answer">Top 20 questions that research could help you answer</a></li>
</ul>
FAQsMarket researchPlanningThu, 02 Apr 2009 10:29:52 +0000Chris Pearce602 at http://www.marketingdonut.co.ukResearch for your marketinghttp://www.marketingdonut.co.uk/marketing/market-research/research-for-your-marketing
<div class="introtext">
<p>Marketing research helps you understand your competitive position, reduce risks, spot opportunities, and take better decisions. It is more than just market research, which is concerned only with examining aspects of a given market, such as its size, location or growth potential.</p>
<p>Marketing research can give you indications, but it cannot give you answers. It allows you to make marketing decisions based on the best, most up-to-date information available.</p>
<p>This briefing covers: </p>
<ol>
<li> Using different research methods.</li>
<li> Sources of information.</li>
<li> In-house and commissioned research.</li>
<li> Budgeting for marketing research.</li>
</ol>
</div>
<div class="section" id="section-1">
<h2><span class="number">1</span> Types of research</h2>
<p class="intro">Five areas provide key market intelligence. </p>
<div class="section" id="section-1.1">
<h3><span class="number">1.1</span> <strong>Customer</strong> research looks at who you sell to and who else might buy.</h3>
<ul>
<li> You need to know the numbers and types of people who might become customers. </li>
<li> You need to understand as much as possible about customers' and potential customers' behaviour, needs, expectations and buying patterns.</li>
<li> You are looking for groups of people to whom similar sales messages will appeal.
<p>The more precisely you can identify each market niche, the more you can sell to it. </p>
</li>
<li> Loyalty and satisfaction levels among your existing customers are key factors. Any shortfall by your competitors' products or services offers you an opportunity. </li>
<li> You need to know how customers view your customer service.</li>
</ul>
</div>
<div class="section" id="section-1.2">
<h3><span class="number">1.2</span> <strong>Product</strong> research looks at what you are selling, how it compares with other products, and how it might be refined and developed.</h3>
<ul>
<li> You need to establish how your goods compare with competitors.</li>
<li> You need to test the potential acceptability of new products and services.</li>
<li> You need to be aware of new technology that may provide opportunities or threats.</li>
<li> Research can help you understand where your products are in their life cycles.</li>
</ul>
</div>
<div class="section" id="section-1.3">
<h3><span class="number">1.3</span> <strong>Promotion</strong> research looks at what impact your marketing spend is having.</h3>
<ul>
<li> How effective is each campaign?</li>
<li> How do you use your sales force?</li>
<li> How effective are the various elements of your marketing mix, such as e-media and traditional advertising, point-of-sale materials, mailshots, search engine optimisation and website?</li>
<li> Does your company's image (brand) help - or does it work against you?</li>
</ul>
</div>
<div class="section" id="section-1.4">
<h3><span class="number">1.4</span> <strong>Pricing</strong> research tests whether you could be selling your product for more. </h3>
<ul>
<li> Investigate perceptions of price versus value, both among customers and among non-customers in your target markets.</li>
<li> You need to know whether your product's positioning is right for its price point.</li>
<li> Full and up-to-date data on competitors' prices is important.</li>
<li> Check, preferably before you try them, the effects of discounts or loyalty schemes.</li>
</ul>
</div>
<div class="section" id="section-1.5">
<h3><span class="number">1.5</span> <strong>Distribution</strong> research examines how your product gets to the marketplace.</h3>
<p>You may not be aware, until you do the research, of all the direct and indirect channels your product passes through.</p>
<ul>
<li> Who are the intermediaries that stand between you and your customers?
<p>Do the brokers or wholesalers who matter recommend you to end-users?</p>
</li>
<li> Which media and third parties serve the same market segments as you?</li>
<li> Are the transport methods you use cost-effective and appropriate to the size, weight and fragility of your product? </li>
</ul>
</div>
<p>Be clear what decisions you want to make before you undertake research so that you don't end up with nice-to-know information rather than crucial data you can act upon.</p>
</div>
<div class="section" id="section-2">
<h2><span class="number">2</span> What do you need to know?</h2>
<p class="intro">You need to know what you want from the research before you can decide on the depth, methods and justifiable budget. </p>
<div class="section" id="section-2.1">
<h3><span class="number">2.1</span> Use <strong>exploratory</strong> research for 'quick and dirty' clues to aid real-time decision making.</h3>
<ul>
<li> For example, are there local customers for your domestic plumbing service who do not even know you exist? If so, a door-to-door leaflet drop may bring good results.</li>
</ul>
<p>Exploratory research will often tell you why a product or service is not working, or why one product sells better than another.</p>
</div>
<div class="section" id="section-2.2">
<h3><span class="number">2.2</span> Invest in <strong>detailed</strong> research when you need to put flesh on the bone.</h3>
<ul>
<li> You will want concrete, detailed data to inform your planning decisions.</li>
</ul>
</div>
<div class="section" id="section-2.3">
<h3><span class="number">2.3</span> <strong>Causal</strong> research can be extremely valuable, but is often hard to carry out and interpret. It is aimed at answering 'what-if' questions.</h3>
<ul>
<li> For example, how would raising your prices affect your sales volume?</li>
</ul>
</div>
<div class="boxout" id="boxout-2">
<h4>Just two quick questions</h4>
<p class="box-intro">Micro businesses often cannot afford marketing research. But they can carry out some useful DIY 'dipstick research'. </p>
<p class="box-intro">Half a day on the phone to your customers, asking just two key questions, can make a vital difference to your chances of success.</p>
<p> Identify 20 top customers and ask them <strong>who</strong> they think you are competing with.</p>
<ul>
<li> Ask each of the customers: "Who do you see as my competitors?" </li>
</ul>
<p> Then ask your customers <strong>how</strong> they make their buying decisions.</p>
<ul>
<li> Ask them: "What makes you use us, rather than the others?" </li>
</ul>
<p class="box-footer">The answers to these simple questions may indicate new possible target markets. It may also lead you to shift the emphasis of your marketing to promote the benefits perceived by your existing customers that you hadn't previously considered. </p>
</div>
</div>
<div class="section" id="section-3">
<h2><span class="number">3</span> Desk research</h2>
<p class="intro">Where it is appropriate, desk research is the cheapest and quickest research of all. It can be very useful for broad-brush exploratory work.</p>
<div class="section" id="section-3.1">
<h3><span class="number">3.1</span> <strong>Internal</strong> sources are free, reliable and usually instantly available. </h3>
<p>They can yield valuable data about sales volumes, buying patterns, customer size and location, and causes of dissatisfaction.</p>
<ul>
<li> The key sources are account records, sales reports, customer records and records of queries and complaints. Do not ignore informal feedback from your employees but beware of personal bias.</li>
<li> Your internal sources may not be set up to make access to this kind of data easy.
<p>You may need to change your methods of recording information. </p>
</li>
</ul>
</div>
<div class="section" id="section-3.2">
<h3><span class="number">3.2</span> There is a wealth of <strong>external</strong> sources to investigate, especially online. External data will be especially important when you are launching new products, entering new markets or starting a business.</h3>
<ul>
<li> Major sources include government statistics (UK and foreign), trade associations, trade press, business magazines and the business pages of national newspapers. </li>
<li> Universities and research organisations can often provide specialised technical data.</li>
<li> A wide range of data is available commercially on a syndicated basis, with detailed, highly specialised reports costing a few hundred pounds each. Always check survey dates, as old data can be dangerously misleading. </li>
</ul>
<p>The external data you find may not be in useful forms. It may have been collected for other purposes, or be from a sample that does not tally with your target group.</p>
</div>
<div class="boxout" id="boxout-3">
<h4>Data you can use</h4>
<p class="box-intro">Research results provide an important reality check, to stop you being too convinced by your own assumptions.</p>
<p class="box-intro">Numerical and motivational information can often be combined to modify an idea and convert a potential failure into a success.</p>
<p> If the numbers deliver a clear <strong>negative signal</strong>, do not ignore it.</p>
<ul>
<li> For example, someone thinking of starting a fitness club might survey a sample of people in the catchment area. Of those potentially interested, the study might show 20% already linked to other clubs, 75% with other fitness strategies and just 5% likely to consider joining.<span class="note">This would be a clear warning not to go ahead as planned.</span></li>
</ul>
<p> Good qualitative research may reveal information that can lead to <strong>new strategies</strong> and new business ideas. </p>
<ul>
<li> The fitness entrepreneur may investigate how people find time to combine exercise with their social lives. The answers may lead to a different approach. For example, a fitness club with luxurious facilities and a bar, to encourage members to stay and relax after working out.</li>
</ul>
</div>
</div>
<div class="section" id="section-4">
<h2><span class="number">4</span> Field research</h2>
<p class="intro">Field research is more expensive and difficult to organise than desk research.</p>
<div class="section" id="section-4.1">
<h3><span class="number">4.1</span> Use <strong>questions</strong> to reveal what people think.</h3>
<ul>
<li> The best form of questioning is usually face to face (singly or in groups).</li>
<li> Interviewing by phone is cheaper, but demands good technique.
<p>People may resent the call, or you may not have their full attention.</p>
</li>
<li> Postal questionnaires are cheap - and you may be able to piggyback on your own existing mailings. Email is even cheaper. Make questionnaires easy to respond to.
<p>All written surveys produce low response rates and those who reply will be a self-selecting group, which may be untypical.</p>
</li>
</ul>
<p>Make survey questions open-ended, so they cannot be answered by yes or no.</p>
</div>
<div class="section" id="section-4.2">
<h3><span class="number">4.2</span> Use <strong>observation</strong> to reveal what people do, rather than what they say or think they do.</h3>
</div>
<div class="section" id="section-4.3">
<h3><span class="number">4.3</span> Use <strong>experiments</strong> to see what people will do in a particular, controlled situation.</h3>
<ul>
<li> For example, will people choose your cakes in blind tasting tests?</li>
</ul>
</div>
<p>The usefulness of field research depends on the clarity of the questions, the reliability of the sample, the researcher's skill and the clever interpretation of the data that is collected.</p>
</div>
<div class="section" id="section-5">
<h2><span class="number">5</span> Quantity or quality?</h2>
<div class="section" id="section-5.1">
<h3><span class="number">5.1</span> You must base <strong>quantitative</strong> research on samples that are big enough to give reliable information, if you aim to establish statistically valid data.</h3>
<ul>
<li> This means that your survey must usually involve questioning at least 150 people.</li>
<li> Scripts must be used, to make sure all participants in the study are asked exactly the same questions. </li>
</ul>
</div>
<div class="section" id="section-5.2">
<h3><span class="number">5.2</span> When you need to know about people's feelings and motivation, you must use <strong>qualitative</strong> research methods. These are concerned with depth, rather than breadth. </h3>
<ul>
<li> Participants are encouraged to give detailed answers and discuss their opinions, rather than just replying to a strict questionnaire. Qualitative research is often done in small groups, known as focus groups.</li>
<li> Allow plenty of time for qualitative work. It always takes longer than you expect.</li>
<li> Qualitative research is harder to analyse than quantitative research.</li>
</ul>
<p>Talking to customers and 'keeping your ear to the ground' are familiar low-key forms of qualitative research. </p>
</div>
</div>
<div class="section" id="section-6">
<h2><span class="number">6</span> Can you do it yourself?</h2>
<p class="intro">Non-specialist desk research can usually be handled in house. DIY field research will only work if it is set up properly, right from the start.</p>
<div class="section" id="section-6.1">
<h3><span class="number">6.1</span> You must be clear <strong>what data</strong> you require.</h3>
</div>
<div class="section" id="section-6.2">
<h3><span class="number">6.2</span> You will need certain <strong>technical skills</strong>.</h3>
<ul>
<li> For example, in designing questionnaires and running focus group discussions about new products or advertising.</li>
<li> Be aware of how Data Protection and other legislation impacts on research.</li>
</ul>
<p>If you and your employees do not have relevant experience, it may be a false economy to complete the research in-house.</p>
</div>
<div class="section" id="section-6.3">
<h3><span class="number">6.3</span> You must give the <strong>individuals</strong> doing the research enough time to do it properly.</h3>
</div>
<div class="section" id="section-6.4">
<h3><span class="number">6.4</span> There must be a realistic <strong>budget</strong> to cover the costs involved.</h3>
<ul>
<li> You may have to pay for the printing, and perhaps mailing, of questionnaires. </li>
<li> You may have to pay to hire a hall - or even a research lab, where you can film the discussion and observe people's reactions through one-way mirrors.</li>
<li> You will have to pay respondents' travel expenses.
<p>Focus group participants are often paid a small incentive. This is usually £50 - £75.</p>
</li>
<li> Input and analysis time and skill and may need to be out-sourced.</li>
</ul>
</div>
</div>
<div class="section" id="section-7">
<h2><span class="number">7</span> Choosing an outside agency</h2>
<p class="intro">Small businesses often cannot use agencies, because most agencies will not work on projects where the budget is less than £3,000.</p>
<div class="section" id="section-7.1">
<h3><span class="number">7.1</span> Find out what kind of <strong>reputation</strong> the agency you are considering has (in general and in the particular area of research). </h3>
<ul>
<li> What do previous clients say?</li>
</ul>
</div>
<div class="section" id="section-7.2">
<h3><span class="number">7.2</span> Decide how <strong>comfortable</strong> you would feel about working with the research agency. </h3>
<ul>
<li> Do you trust the people you have met?</li>
<li> What relevant experience and qualifications do its employees have?
<p>You search online for market research providers and recognised freelance research practitioners in The Research Buyer's Guide. Alternatively, download an order form from the website (£80 plus p&amp;p for printed copies)</p>
<p>The Chartered Institute of Marketing (01628 427 120) also offers a list of accredited agencies.</p>
</li>
</ul>
</div>
<div class="section" id="section-7.3">
<h3><span class="number">7.3</span> Be realistic about the likely scale of <strong>fees</strong>.</h3>
<ul>
<li> Fees will reflect the work to be done and the agency's supposed status.</li>
<li> Can the project be scaled down?</li>
</ul>
</div>
<div class="section" id="section-7.4">
<h3><span class="number">7.4</span> Consider whether you should be using a <strong>freelance researcher</strong>.</h3>
<ul>
<li> A freelance may be the affordable option, especially for qualitative work.</li>
</ul>
</div>
</div>
BriefingMarket researchPlanningThu, 02 Apr 2009 10:03:44 +0000Chris Pearce588 at http://www.marketingdonut.co.ukSpotting gaps in your markethttp://www.marketingdonut.co.uk/marketing/market-research/spotting-gaps-in-your-market
<p><strong><img style="float: right; margin: 10px;" title="Spotting gaps in your market - Fruit and veg stall" src="/sites/default/files/Fruitvegstall_249x167.jpg" alt="Spotting gaps in your market{{}}" width="249" height="167" />Every business needs to stay fresh to be competitive. This may mean regularly refreshing your products or services, taking them to new markets or even coming up with an entirely new offer. Simon Wicks looks at how you can identify opportunities for innovation</strong></p>
<p>Innovation is at the heart of every viable business idea, but "new" can quickly lose its gloss in a competitive marketplace. Rivals will waste no time improving on your offer, and customer expectations will rise accordingly. If you don't keep up with the market, someone else will.</p>
<p>"If you sit on your laurels, there's a risk your customers will move away from you," warns John Fitzgerald, chief executive of entrepreneur-support organisation <a title="BRAVE" href="http://www.brave.org.uk" target="_blank" rel="nofollow">BRAVE</a>. "You could have a perfectly good product or service, but your customers may have become more demanding or there may be new competitors in the market. Good companies keep an eye on what's changing in their environment."</p>
<h2>Listen to your customers</h2>
<p>"Any small business needs to look for trends in its customers," Fitzgerald insists. "What are they thinking? Are their expectations changing? If your clients are drifting away, you run the risk of waking up and finding they've gone.</p>
<p>"But if you listen to your customers, you find out whether they may be thinking of leaving and give yourself time to do something about it," he continues. "Don't allow the day-to-day to get in the way - put time aside to <a title="talk to your customers" href="/marketing/market-research/questionnaires-surveys-and-focus-groups">talk to your customers</a>, and not just your favourite ones either."</p>
<h2>Watch your competitors</h2>
<p>Knowing your competitors' strengths will help you identify gaps in your offer. Knowing their weaknesses will help you identify gaps in theirs, and could highlight needs in the market that are not currently being met. Mystery shopping is one way of finding out about rivals, as is attending <a title="Trade shows" href="/marketing/exhibitions-and-events/visiting-a-trade-show">trade shows</a>. But your customers are likely to be the most valuable source of information.</p>
<p>"Ask them 'What makes you stay with this competitor?'," advises Fitzgerald. "Is there an opportunity in that for you? For example, if you offer a higher standard of service, maybe that gives you a new unique selling point. Look for weaknesses in your competitors and use that information to win new clients and keep your existing customers."</p>
<h2>Keep up with legislation</h2>
<p>New laws steer businesses in new directions and may even open up new markets; environmental regulations, for instance, have generated an industry dedicated to helping firms reduce their environmental impact.</p>
<p>"Keep an eye on the government changing the landscape," Fitzgerald suggests. "A lot of companies don't keep up with legislation and this costs them opportunities."</p>
<p>You can also learn from the way other sectors do business and, if appropriate, bring their approach into your own firm. "Banks learnt a lot about customer service and sales through benchmarking against supermarkets," Fitzgerald notes.</p>
<p>"The most important thing is to give yourself time," he concludes. "The earlier you see a problem, the easier it is to adapt before anyone else."</p>
<ul>
<li><a title="Trendwatching" href="http://www.trendwatching.com" target="_blank" rel="nofollow">Trendwatching</a> scans the globe for emerging consumer trends.</li>
</ul>
ArticleYour target marketMarket researchMaximisingThu, 02 Apr 2009 09:57:59 +0000Kasia581 at http://www.marketingdonut.co.ukBenchmark your businesshttp://www.marketingdonut.co.uk/marketing/market-research/benchmarking/benchmark-your-business
<p><img style="float: right; margin: 10px;" title="Benchmark your business" src="/sites/default/files/benchmarkplaque_250.png" alt="Benchmark your business{{}}" width="249" height="167" /><strong>Benchmarking provides a means to compare your firm against other businesses, and identify areas where you can improve your performance.&nbsp;</strong><strong>Rather than being a pointless exercise in data analysis, it can help you to identify areas where you can make changes and make your firm more profitable. It gives you an insight into different ways of working, which can give you an edge over the competition</strong></p>
<p>To benchmark your business, start by deciding which areas you want to compare. Select those that are central to achieving your key business objectives such as finance, sales or margins. For example, you might want to assess your business costs against industry norms.</p>
<h2>What should you benchmark?</h2>
<p>Look at the mechanics of your business. How well are you using your technology, for example? Are other businesses benefiting from new ways of doing things? Think how other firms’ objectives can benefit your business.</p>
<p>Avoid over-complicating your approach — stick to one or two key indicators to benchmark. The more focused your research, the more useful it’s likely to be.</p>
<p>Benchmarking indicators include:</p>
<ul>
<li>Costs (eg utility bills, wages, R&amp;D costs etc).</li>
<li>Key performance indicators (eg sales per employee, gross profit margins etc). Some indicators may require analysis, such as customer satisfaction levels or effectiveness of staff training.</li>
<li>Processes (eg stock management, quality control or customer services).</li>
<li>Strategy — you might be able to learn strategic lessons from other organisations.</li>
</ul>
<p>Now you need to decide against which businesses you will benchmark your firm. At a basic level, you can compare your figures against available industry norms. It is worth comparing your operations with firms outside your sector who excel in areas you want to measure. Analysing their approach and adapting it could help you overtake competitors.</p>
<p>You can access basic benchmarking data using the <a title="Benchmark Index" href="http://www.benchmarkindex.com/" target="_blank" rel="nofollow">Benchmark Index</a>. You could also contact your <a title="Trade Association Forum" href="http://www.taforum.org.uk/" target="_blank" rel="nofollow">trade association</a> or business support organisation to ask whether they can provide information about benchmarking organisations relevant to your business sector.</p>
<h2>Find a benchmarking partner</h2>
<p>You can join forces with other businesses so that you can both carry out comparisons on an ongoing basis. It is vital that you come to an arrangement with a business (or businesses) of a similar size and structure — and one with similar objectives.</p>
<p>Your trade association or local business support organisation might be able to help you find such a partner. Alternatively you can pay to use the services of a benchmarking adviser.</p>
<p>It’s a good idea to draw up a benchmarking agreement with your partner. This should include the information you want to exchange and how it will be used. Never ask for information that you are not prepared to share in return.</p>
<ul>
<li><a title="Benchmark Index" href="http://www.benchmarkindex.com/" target="_blank" rel="nofollow">Measure your performance against more than 100,000 companies on the Benchmark Index website</a></li>
</ul>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Ten ways to benchmark your business" href="/marketing/market-research/benchmarking/ten-ways-to-benchmark-your-business">Ten ways to benchmark your business</a></li>
<li><a title="Benchmarking briefing" href="/marketing/market-research/benchmarking-briefing">Benchmarking briefing</a></li>
</ul>
ArticleSWOT analysisBenchmarkingMarket researchPlanningThu, 02 Apr 2009 09:04:42 +0000Kasia564 at http://www.marketingdonut.co.ukTen ways to benchmark your businesshttp://www.marketingdonut.co.uk/marketing/market-research/benchmarking/ten-ways-to-benchmark-your-business
<p><strong>Benchmarking provides a means to compare your firm against other businesses, and identify areas where you can improve your performance. Tom Whitney picks out ten aspects of your business you should assess to see if you measure up</strong></p>
<ol>
<li><strong></strong><strong>Focus on your key business drivers. </strong>These are the processes that underpin the success of your firm, and will vary from sector to sector and business to business. If you provide a service, customer care is likely to be a key business driver; if you are a high-volume manufacturer, production-line speed will be a key business driver.</li>
<li><strong>Decide who to benchmark against.</strong> Your <a title="Trade Association Forum" href="http://www.taforum.org/" target="_blank" rel="nofollow">trade association</a> or local business support organisation should be able to suggest benchmarking partners. Pick firms of a similar size and with similar objectives to help work out industry yardsticks; but also compare with firms outside your sector who excel in areas you want to measure - importing their approach could help you leapfrog <a title="How to get the measure of your competitors" href="/marketing/internet-marketing/e-commerce/how-to-get-the-measure-of-your-competitors">competitors</a>.</li>
<li><strong>Compare strategic objectives.</strong> Can you learn strategic lessons from benchmarking partners? Does a focus on quality standards give them an edge, for instance? Are they developing online sales channels? Think what other firms' strategic objectives would bring to your business, if anything.</li>
<li><strong></strong><strong>Assess the efficiency of your processes.</strong> Look at the mechanics of your business - the production techniques, quality controls, stock management and so on. How effective are they? How well are you using your technology? Are other businesses benefiting from new ways of doing things?</li>
<li><strong></strong><strong>Analyse your allocation of resources.</strong> Are you putting resources into the same areas as your benchmarking partners?&nbsp;Do they have more employees, or fewer? In which parts of the business? Have they invested more in IT and other equipment? Are they spending more on marketing?</li>
<li><strong></strong><strong>Weigh your costs against industry norms.</strong> These might include utility bills, wages or research and development costs. If you can highlight areas where your costs are higher than the average, you may be able to make savings.</li>
<li><strong>Calculate sales per employee.</strong> This will provide a straightforward measure of productivity and efficiency. If your sales are comparatively low, investigate the reasons; you might find the problem is not with your <a title="Sales agents and distributors" href="/marketing/sales/sales-agents-and-distributors">sales staff</a> but your product, or that you are pitching to the wrong market.</li>
<li><strong>Work out your profit margins.</strong> Your gross profit margin (direct profit on the cost of goods and services sold) will tell you how efficient your production processes are. Comparing this with your net profit margin (profit after all your costs have been taken off, including marketing and administration) will tell you how effectively you earn profits from sales. But how do you compare with other businesses? Should you streamline your operation?</li>
<li><strong>Measure your customer service standards.</strong> <a title="Customer service" href="/marketing/customer-care/customer-service">Customer service</a> is a key battleground for businesses with similar products or services. Working out the proportion of sales accounted for by returning customers will give you a picture of your service levels, as will the number of complaints you receive and the time it takes to fulfil an order.</li>
<li><strong>Obtain benchmark information without approaching an external benchmarking partner.</strong> You can benchmark your firm's key statistics against widely available industry norms - salary surveys and published information on financial ratios for your industry, for example.</li>
</ol>
<p><strong>More on this topic:</strong></p>
<ul>
<li><a title="Benchmarch your business" href="/marketing/market-research/benchmarking/benchmark-your-business">Benchmark your business</a></li>
<li><a title="Choose a pricing strategy" href="/marketing/marketing-strategy/pricing/choose-a-pricing-strategy">Choose a pricing strategy</a></li>
<li><a title="Getting the measure of your marketing" href="/marketing/direct-marketing/running-a-direct-mail-campaign/getting-the-measure-of-your-marketing">Getting the measure of your marketing</a></li>
</ul>
ArticleSWOT analysisBenchmarkingMarket researchPlanningThu, 02 Apr 2009 08:54:35 +0000Kasia560 at http://www.marketingdonut.co.uk